To enjoy a comfortable future, investing is absolutely essential for most people. As the coronavirus crisis has demonstrated, a seemingly stable economy can be quickly turned on its head, leaving those who haven’t prepared to scramble for income. But those who could hold on to their investments may have done quite well, as the market registered new all-time highs in the second half of last year and in early 2021.
If you’ve already received a $600 stimulus check payout — or expect a new $1,400 one in the third round of relief — and don’t need this money for near-term expenses such as paying down debt, investing it could make a lot of sense. Rather than having the money sit in a non-interest-bearing checking account, you could grow the money by investing it instead.
But with some stocks at what seems like astronomical valuations, what moves should investors consider taking headed into the second half of 2021? One idea is to have a mix of safer investments and riskier, higher-return ones.