2006-10-04 03:50:29 · 6 answers · asked by ? 2 in Business & Finance ➔ Investing
You've heard the adage "Buy low, sell high?" You would be violating this little bit of wisdom if you were to invest now.
I'm not sure why someone would tell you to get market advice from a Broker. A Broker is a clerk, not an analyst or a trader, and is the lowest on the totem pole in the finance world.
To answer your question, if you want to invest in the Dow directly, you can buy the Dow ETF's, called Diamonds (their ticker symbol is DIA). You can buy one for about $117 today, or you can buy a thousand. It will match the Dow almost perfectly.
Or you can buy a few DIA's and a few SPY's (called Spyders - matching the S&P 500), and a few Qubes (QQQQ - Nasdaq), and be diversified across the entire market.
You can also invest in an Index Fund, and pay them to do the same thing I just told you to do.
2006-10-04 04:05:02 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
An index fund with a low expense ratio is a good way to dollar-cost average your money in the market. However, getting into the market now may not make much money for you, unless the dow continues to keep climbing. Remember - the way to make money in the stock market is to buy low, sell high. If you get in now, you may be buying at the high point.
2006-10-04 10:56:23 · answer #2 · answered by Ralfcoder 7 · 0⤊ 0⤋
One thing I learned was not to invest any money in the market that you may need in the next 5 years. Invest in companies for the long term. If you want individual stocks then research the companies very thoroughly first.
Since it's the job of brokers to make money on the market it may be wiser to buy mutual funds that are managed by a broker. They'll charge a percentage, but there's more chance of making money using a broker's expertise.
I wish they had let us invest 2% of the social security money we give to the government every week. I heard where a town that allowed that before they outlawed it are retiring with twice their current paycheck. We can pretty much guarantee that the money we currently give to social security will be gone before we retire.
2006-10-04 11:09:01 · answer #3 · answered by Anonymous 7 · 0⤊ 0⤋
Little late maybe don't you think? There will probably be a few days of corrections before a trend is recognizable.
NO, you should not invest in anything you don't understand, and you obviously don't know much about the stock market.
2006-10-04 10:54:00 · answer #4 · answered by snvffy 7 · 0⤊ 0⤋
I'd talk with a stock broker in person .. get as many ideas as you can from him. But don't buy through him .. the commission is a fortune. Take his recomendations home with you and then buy them on line. Trades on line are as low as $9.99 per trade. Good Luck! :)
2006-10-04 10:53:16 · answer #5 · answered by tysavage2001 6 · 0⤊ 0⤋
Get a ROTH IRA...best way to go. When you take the money out at retirement age it will be tax free!
2006-10-04 10:54:08 · answer #6 · answered by mikeandstephallen 2 · 0⤊ 0⤋