The stock market is still very shaky. In fact, recession or not, the stock market will always be shaky. Hence, investing on stocks is a gamble. I have heard stories of many who made it rich overnight, and went on bankrupt the following day.
Here are some practical tips from Suze Orman, a renowned finance expert, that you might want to consider:
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Money Management 101
5 comments:
Since the marketplace is so volatile, I find myself wondering what investments I should consider right now.
I think the best option is to have a 'wait and see' attitude for awhile until the fed's bailout package is fully released, implemented, and when the new administration has really 'jumpstarted' the economy. More often, to hold on to what we have in a little while pays more in the end than making hasty investments for bigger and quicker gains.
Suze Orman is great at 'uncomplicating' the complicated. I've been a fan for quite some time and her explanations and answers to questions are simple to understand.
As far as the market is concerned, I think there are some VERY good deals to be had while the getting is good. Now that the markets have adjusted to a truer value, lot's of opportunities exist. If I were currently considering investing I would certainly choose a mutual fund that is focused on capital appreciation - especially considering the current valuations. Oh well - just my take on things.
Suze Orman, in my opinion, is simply relaying common sense to everyone.
Personally, I don't plan to put money in the stock market any time soon, simply because I don't have any money I'm willing to lose. I feel that I need that money right now, in an emergency fund, so it's not worth the risk to me. The trick behind being successful in the stock market is to only use money you won't need in the next 5 years.
And the more people panic and pull their money out of the stock market, the more the economy suffers.
@ the new CPA
Mutual funds? Hmmm, that's well worth a look eh. ^^ thanks.
@ Jennifer
I'll keep that in mind. Thanks for the tip. ^^