Put Your Money To Work

Mortgage rates and gas prices aren't the only things going up.

With the stock market at a five-year high, the bond market near a five-year high and commodities like gold and oil soaring, this is an exciting time to be an investor.

But it can also be pretty confusing.

Ray Hennessey, editor of SmartMoney.com, has some tips for investors to help park your money in the best place right now.

First, Hennessey recommends investing in Exchange Traded Funds. "They're safer. They don't rise as fast and they don't fall as fast."

Secondly, keep some money in cash.

"You can get a good CD for a short term now with a really good interest rate and it's a safe way to do it," Hennessey explains. "You know at the end of that term the money is going to be there."

And finally, don't do anything drastic.

"This is a really tricky time," Hennessey says. "Something is going to have to give. Either the stocks are going to lose steam or maybe we are going to see that in the bond market."

Hennessey recommends stepping back and not making any wholesale changes to your portfolio.
by Jenn Eaker