2006-07-16 11:19:34 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Rule #1 - NEVER dump all your money into any single security. That's a disaster waiting to happen.
Rule #2 - if you aren't knowledgeable enough to not need to ask that question on a message board, then you aren't qualified to make that bet.
Question for you - How do you know it is cheap?? What factors exist in the economy that make you believe that the Nasdaq is poised to make above average gains into the future? (or for that matter, not drop like a lead balloon) What time frame are you looking at?
What you are proposing is speculating, aka gambling, not investing and you are definitely more likely to lose money than win.
Investing is based on a sound plan and a knowledge base that improves your odds of success.
2006-07-16 11:25:13 · answer #1 · answered by Lori A 6 · 0⤊ 0⤋
The crash of the QQQQ and the NASDAQ is forecasting lower rates of return for tech stocks for the next 6 to 18 months. What the market is saying is that the tech equipment that companies have on hand now is plenty good enough for the foreseeable future. Microsoft's VISTA operating system will debut into a chilly market next spring.
2006-07-16 20:36:18 · answer #2 · answered by wealthmaster 3 · 0⤊ 0⤋
Wait!
The NASDAQ is going to get a lot, lot cheaper than it is now. Wait until February 2007 before you do that.
I am not one of these "phony diversity" hounds, like Lori and purplehayes. The Q's are diverse in and amongst themselves- it is not " a single security". It is, in fact, like having your own mutual fund in your pocket. So why don't you guys get educated yourselves before you go spouting off the usual routine about diversity? Diversity is one way to guarantee you will lose money...you just have to spread it out a little. Right... that idea is so old it farts dust.
You want to put it all in the Q's, that's great. Just wait until the bottom- some time around the end of December, late January 2007.
Best of luck to you!
2006-07-16 18:42:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
As a fellow member of this profession, I have to agree with Lori. Also, with any equity, Do Not assume a stock is cheap just because of the price it is going for. Research, Research, Research.
2006-07-16 18:33:59 · answer #4 · answered by om_nupe 2 · 0⤊ 0⤋
You can, but wait till the current bear market ends and the new bull market cycle begins. Probably end of 2006/beginning of 2007... nobody knows this is just wild guess.
2006-07-16 19:16:09 · answer #5 · answered by teddybear1268 3 · 0⤊ 0⤋
"reaping big gains" is like waiting for the tooth fairy.
It's not happening. Slow and steady is the way.
2006-07-16 18:22:30 · answer #6 · answered by Anonymous · 0⤊ 0⤋
never invest to heavily into any one company... i don't how old you are but most young investors my age (30) learn this the hard way when tec stocks crashed in late 90s/early 2000s.
2006-07-16 18:25:59 · answer #7 · answered by Jason H 3 · 0⤊ 0⤋