2006-07-05 19:19:47 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
Stocks are risky and you have a good chance of losing part of your money. However, in exchange for taking on that risk, stocks also offer the greatest potential returns.
As you can see, you've already gotten a lot of advice that conflicts. What you do with that kind of money depends a lot on how old you are, what your current earning ability is, how much you've already got invested, if you have a 401(k) or IRA (or both), how much risk you're willing to take on in order to have growth, etc.
Even the financial advisors here don't fully agree with each other. How do you know who is right? Before you commit a nickel to a financial advisor, get yourself an elementary education in personal finance. Believe this: no one is going to care as much about your money as you are. No one is going to watch it as closely as you are, especially someone who's got multiple accounts to look after. So get yourself a foundation, so you'll know if someone is actually giving you good advice or not. Personally, I recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias. It'll give you an overview of everything you need to know (stocks, bonds, real estate, insurance, etc.). Then you can decide if you need a deeper education in anything. Good luck!
2006-07-06 16:11:10 · answer #1 · answered by VinTek 7 · 2⤊ 0⤋
Average stock market returns are about 6% above the risk free rate (treasury yields) -- that would be about 11% now. The standard deviation of the S&P is between 18-20%.
this means that two thirds of the time the stock market will be between -7% and 31%.
Academic studies have shown that the stock market performs differently when Democrats and Republicans are in office. On average, the market does about 9% better per year when Democrats (this is not a typo) are in office.
2006-07-06 02:43:23 · answer #2 · answered by Ranto 7 · 0⤊ 0⤋
stock market depends on various factors .. economy of the nation/world, the industry (automobiles, software, oil and gas, etc.), the company.
if you wish to have large gains, you should have a knack of picking a stock of a company which has a great potential and you need to spot it before anyone does
chances of losing money are high if you invest haphazardly or your bet on a potential company fails or there in bust from a boom or there is major crisis in the economy/industry, etc.
you need to digg in more
hope this helps
2006-07-05 19:28:37 · answer #3 · answered by chivalc 2 · 0⤊ 0⤋
If you are going to invest, get some advice first. Secondly, you have to look at it long-term, not short-term. I would recommend a VUL, or Variable Universal Life plan if it's for retirement. A VUL is a life insurance policy with underlying mutual funds that will make your money work for you. Let me know if you want more info!
2006-07-05 19:25:32 · answer #4 · answered by Therealmsred 3 · 0⤊ 0⤋
Chances of losing money are almost nil if you have a 5 year plus view and you use the mutual fund route. For more info you can contact me at amreshshah@yahoo.co.in, you can also visit me at www.rjinvest.njfundz.com
2006-07-05 23:12:03 · answer #5 · answered by amreshshah 1 · 0⤊ 0⤋
Very Low Risk (If you have a Portfolio Manager like myself or at least a Financial Advisor)
10%
If you need more detailed FREE information you can drop me a line.
Top 4 Answerer in Business & Finance. (Vote for me)
2006-07-05 19:30:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Quite risky.
Very high.
Stick with bonds if you don't like risk. Guaranteed returns and minimal risks.
2006-07-05 19:22:54 · answer #7 · answered by Anonymous · 0⤊ 0⤋
90% of people are loser,5% no loser no winner and 5% winner.in long time.
2006-07-05 19:41:31 · answer #8 · answered by dara 2 · 0⤊ 0⤋