I want to try buying some stocks while the market is crap and prices are low.
Thinking about sharebuilder.com. Everyone says "diversify," another said money market mutual funds are good because they\'re gov\'t-insured. Anyone have general advice on investing?
Our own Wildcoyote is a financial advisor from what I understand.
Everyone\'s objectives, risk tolerance and market perspectives are unique so it\'s hard to come in and give a point blank recommendation.
Right and right Al.
Ulee- it all depends on your time frame. Is this for eventual retirement? A home purchase? Rainy day fund?
Right now interest in a money market is so low, it\'s just about pointless, and can\'t really even be called and investment. It\'s more or less a parking space for the money.
For long term (10+ years) it\'s great time to get into the stock market. No load mutual funds are great for beginners. Try to mix companies of different sizes and industries. This is the diversification you were told about. Also try to get some exposure to companies outside the US. It\'s going to grow in a 2 steps forward one step back type of way. It is paramount not to panic in the lows.
This is slightly more advanced:
A strategy I\'m trying with my clients right now is to invest in
consumer staples. These are companies such as Proctor and Gamble. They make things (tooth paste, toilet paper) people buy no matter what. Even if you got laid off, your still buying tooth paste and toilet paper. These stocks typically pay dividends so you make some money even if the stock price tanks. You can cross-reinvest these dividends into
consumer cyclicals. These are companies that make things people only buy when financially secure. Think Home Depot, Harley Davidson. These stock prices take a beating in a bad economy and are a great buy right now. When the economy picks up, so will the stock price, and you bought at a discount.
If anyone has any questions feel free to shoot me an email.
The only investment I might make, if I could of course, is in gold.
Why?
Gold prices are at an all time high right now. Buying into a high market is as close to guaranteed failure as someone can get.