i was thinking about investing some money in some short term stocks or mutual funds. is it worth it to just invest around 1000 usd or should i save up more before i start?
2006-10-22 16:47:44 · 5 answers · asked by 70xbody 2 in Business & Finance ➔ Investing
If you have money to invest, then invest it. A study by Beebower et al showed that 90% of your returns come from asset allocation, which leaves the other 10% to market timing and security selection. Unless you feel the market is really overbought and may experience a selloff (the Dow did just hit an all-time high), then always invest. Do not try to time the market, you may be right a few times, but most often you will be wrong.
With only $1000, the best thing to do is invest it in a security like the SPY; it trades like a stock, but the returns will match the S&P 500.
If you are very risk averse, then put your money in a cd. You can get a very respectable 5% rate on a one-year cd.
2006-10-22 17:05:49 · answer #1 · answered by Andy S 2 · 0⤊ 1⤋
Don't bother investing short term unless your an expert. 1k isn't gonna do tons for you because alot of your profit will get eaten up by fees. take your 1k and put it in to along term mutual fund or a dividend producing stock and just forget about it for like 20 years.
2006-10-22 20:36:31 · answer #2 · answered by travis R 4 · 0⤊ 0⤋
trade exchange traded options alongside the stock market, $1000 is more than enough. If you were wanting to do mutual or straight shares you'd need a little more - comfortably perhaps $3000 - $5000.
2006-10-22 18:12:39 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Try paying a visit to http://investing.hammocksurvivalguide.com/ for some investing ideas. It's packed full of informative articles.
2006-10-23 10:56:08 · answer #4 · answered by Brian W 2 · 0⤊ 0⤋
Invest the amount to the extent that you are comfortable to lose.
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2006-10-22 22:18:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋