Is there really such a thing as a safe investment? Critics of that question on all sides of the investing world would say that certificates of deposit, T Bills and the likes are considered safe. Yet many of those same people would argue that mutual funds aren’t safe. Guys, let me just paint a picture for you. Then you will understand more about how to think when it comes to safe investments, no matter who you are. It will be seasoned investor’s perspective worth reading.

Have you seen what the stock market is doing lately? It is at record highs all the while the economy is still not quite performing on all levels, across the board. In other words, big business and investors are making money, but the American economy is still in the toilet. Now just how could that happen you ask?

Take a step back in time to right before Obama took over as President. Do you remember the fallout of the housing crisis? do you remember the subsequent reaction of the stock market? All those things are done affecting America’s core businesses, and despite the stock market scare back then, subsequent years become one of the best buying opportunities the stock market has seen in decades.

You would have to be young and in your 20’s like I was to completely see things that way perhaps. There were many people nearing retirement that were really put in a bad spot. What happened was absolutely horrible, and I’m not trying to make it look like the turnaround made it better or that the stock market always smells like roses. I’m merely pointing to history at the same time I’m recognizing trends and where we are at the present moving forward when it comes to investing.

Considering what the economy looks like and how it compares to the stock market currently. It paints a certain picture. It says that global news has a much better chance of taking all investments, including the CD’s at the bank and the government’s treasury bills especially. They seem like what would be hit first in actuality, and whatever happened would then tank the markets.

Of course that’s in a doomsday type reality, but you do have to accept the risk when you invest. Furthermore, who knows what the stock market is going to do. I can speculate all day based on my prior knowledge and thoughts and goals moving forward as an investor. I can tell you this much, I certainly don’t think that a certificate of deposit is any safer than a good mutual fund with a solid track record. Of course, safe and risk at that point would still mean different things, which is why you invest in certain securities in accordance with your age, risk tolerance and investment goals.

If you do that, and diversify your investments, then you’re doing just fine. Should you invest in individual securities? You can, but you do at that point start dealing with investment choices that are deemed less safe no matter how strong the market is currently, as you can see, it really matters what you personally think are safe investments.