is it good to invest in shares at the moment? or is it worst than 1999?

Answer 1

It's not as bad as 1999. There are investment bubbles in commodities and the oil sector but things aren't nearly as overvalued as they were in 1999.

As always making a profit in shares depends on choosing the right sectors and stocks, making sure you are diversified and holding for a reasonable period (3 years plus). Make sure you do your homework before committing any money and stay on top of news about the companies you hold shares in.

Answer 2

The Dow has finally crawled back to where it was in 1999. If you pick the right shares or mutual fund , you will be OK, regardless if the bottom falls out tomorrow. Purchase shares at "dollar cost averaging", meaning you purchase on a regular basis, weekly, monthly, etc. and over a long period of time the highs and the lows average to a good price anytime for the shares.
If you don't play, you cannot win.
Get shares that pay a dividend and sign up for dividend re-investment on them.
In closing, go visit a certified professional planner or stock broker and have them explain this to you and give you some ideas on your investment future.

Answer 3

Depends really on what timescale you are investing for.

Over time the stockmarket will return about 11% if all dividends are re-invested.

Like all statistics this hides more than it reveals as it very much depends on taking a medium to long term view i.e at least 5 years but preferably more than 10 years.

Over this sort of timescale you could buy iShares, (FTSE100 tracker shares), and reasonably expect to see a return of about 11%.

However you could have started buying at the top of a bull market then be in the middle of a bear market when you need to cash in and so the overall return would be distorted.

If you want to make more than this then you'll need to become an active trader. By this I mean buying individual shares for a short-term holding and looking to turn over your working capital several times each year.

This requires a lot more effort, both in times of original research to decide what your methodology is and then time managing the investments. It also requires more nerve to make the decisions and absorb the inevitable losing trades.

It's taken me a number of years to arrive at my current state where I make about 30% p.a. on my capital. It's been quite nerve racking at times and a lot of fun at others.

Have a look at the Fool website, read through the articles and message boards on investment then sit down and have a good think about why you want to invest and what your objectives are.

Good luck

Answer 4

No it is not worse than 1999. However, there is alway risk when investing. And the future is uncertain. As one responder mentioned, many of the blue chips are currently selling a very reasonable prices. Some examples: MSFT, DELL, HD, COP, APA. That does not however mean that they will not be more reasonably priced next week or next month or next year.

Since the future is uncertain, it is always wise to have a healthy cash reserve for when the really good oportunities come along. In the mean time the nibble approach works well. If you find a stock that appears interesting, take a nibble. If the stock rises a couple of points, take another nibble. But if you start to choke on the first nibble, spit it out (sell it.) I nibbled at MSFT and DELL and spit them both out. However, others that I nibbled at tasted really good and I filled up on them.

Answer 5

There is no straight answer to your questions. Whether it is good or not depends on your time horizon for investment.The longer you can wait, the more certain it is that the market will come back. It is a cyclical thing.The U.S. is a very open Economy, where there is less 'friction' , there is a process of creative destruction and renewal in which only the fitter Companies survive, and the Economy is restructured to adapt to a new environment. So the market will always come back. The U.S. stock market is by far the biggest, deepest, broadest and most transparent, so it will always be there. The market cap of U.S. stock market is $12 trillion, while the next biggest, Japan is $4 trillion.

In general it is always better to buy when the fundamentals are low, and the stocks are not over-valued.

Answer 6

Nobody is perfect in timing of investment but stock investment for long haul
is always good investment, provided you do good research of finding good
stocks. Right now it is not bear market but stocks take generally a downturn
in September/October period . However it goes up for a year end rally. Mutual funds and Institutions are ready to move up SP500 to show profit for 2006. SP500 has not done well this year. Stock market is better than 1999, there is no speculative bubble other than in Home builders.

Answer 7

There are plenty of opinions about the stock market, but it involves predicting the future, which requires a crystal ball. Nobody knows which way the market will go next, but if history is your guide, it's almost certain to go up in the long run. The best strategy is to buy and hold, which is also the most boring strategy. One thing you can predict about the market is that trading involves transaction costs.

It's important to diversify. Don't put all your eggs in one basket. For most people that means mutual funds. If you invest in two or more mutual funds, you should choose funds that invest in different sorts of things from each other.

Answer 8

not knowing your age, etc. this is a guess for me. But in general, when investing with mutual funds its based on long term investments and not short term gaines. Therefore there is no better time than now to invest! If your looking to invest in a particular stock than that depends greatly on a lot of other factors that I wouldn't be able to answer without knowing the particular company, etc.
check this link to see the "high cost of waiting"

http://ww4.primerica.com/public/high_cost.html

Answer 9

at any point in time there are always good stocks to invest in even during the 1999 crash.

Answer 10

Yes Yes Yes...Many blue chips are "on sale" right now. Diversify and invest for the long term.