Lux Investing
Is the stock market still a good place to invest your money?
I am constantly wondering if the stock market is still good to invest your money, but I am wondering what does it take to be successful in the future? Please provide a detailed answer. Thank you!!
Public Comments
- The stock market is usually I good place to invest your money, only if you know what you are doing. Currently things are still a little unsteady due to something that you may have heard about called the Credit Crunch. A lot of drastic measures have been taken by our colonial cousins across the pond and the real results of these, in my opinion, have yet to be fully realised. Other factors like Oil and the price of wheat are making economies a little shaky generally. But in the future, a day will come where the market will be the only place a realistic investor would be looking to put his money. The markets go in cycles, sometimes up, sometimes down. You just have to be ready for when it goes up. As for being successful, there are no easy quick fix answers. I suggest a healthy course of reading trading methods and strategies, a few biographies of successful traders (you need to read about Warren Buffet) and a lot of time checking, preferably every day at what the markets are doing, how news is affecting share prices, what people are saying about companies, wider economic conditions, etc. A good easy introduction into share trading would be a book called 'The Naked Trader'. Good luck.
- yes it sure is. because even thogh it may not seem like your getting as much back, its still a matter of thinking smartly and buying low seling high. You still would get relatively the same amount of capitol gain in the outcome if your smart about it.
- Probably the best place to invest your money. With some caveats. Historically, the stock market has returned about 11-14%; bonds about 5%; savings accounts, well 1-2% (if that). Factor inflation robbing you of 3-5% and your real returns drop to 6-9%, 0-3%, and negative 4-6% (which means you are LOSING money by saving. Suggestion: Pay off all high interest credit card debt; start an emergency contingency fund (2-3 months emergency cash in a bank or money market fund with check writing privileges; educate yourself online (start with Vanguard http://www.vanguard.com) and go from there. Read the Boggleheads Guide to Investing. Start with an index Mutual Fund and invest regularly and watch your money grow. There will be ups and downs but with a low cost mutual fund you will spread your investment over 100-500 or more stocks. And while you will never initially hit a home run you will also probably not strike out either. As your portfolio grows and your understanding of the stock market increases, you could add other mutual funds (international, real estate, energy, etc) or invest in a stock or two you have thoroughly researched. Get started now and reap the rewards of compound growth. Learn about it at: http://www.moneychimp.com/calculator/compound_interest_calculator.htm Good luck; it's a good choice!
- 1) Yes. 2) Portfolio Manager.
- The stock is ok to invest you money in if you know anything abt stocks. my best idea would be to save a 3-5thousand and go to a bank that has high interest rates on CD's. I started when i was 18yrs old it had 9% interest and i nearly gain 6times of what i put in there and i am only 22.
