Can you clarify what you mean by what type of investment is recommended?
Are you looking for a recommended distribution of your portfolio to each of those buckets, or for something else?
I'm going to presume you want to know my thoughts on each of those items.
I'd stay away from OTCs as they're volatile in general and not as liquid as most stocks and ETFs. If you had to sell in a hurry, you could get some nasty fills.
ETFs, if you're not very experienced is usually the best way to go to be diversified and still participate in the market.
Pretty much almost ANY mutual fund can be represented by a similar ETF, but with all the benefits of liquidity and lower admin costs.
For example, want to trade the major indexes, use
QQQQ for Nasdaq
DIA - DOW 30
SPX or SPY for the S&P 100/500
IWN - Russell 2000
and so on.
Want to trade energy or oil, you've got
XLE - energy
OIH - oil holders
XOI - Oil companies
OIS - oil services
and so on.
There's an ETF for everything.
And then, if you didn't want the diversification of an ETF, you can go directly to stocks.
Since buried in each index are both good and bad sectors, buried in each sector are both good and bad stocks,
Just like trading sectors can be more profitable than trading the indexes, trading stocks can be more profitable than trading sectors, IF you know what you're doing.
Be careful. Education is important. Just like you can make more money faster choosing different instruments, if you don't know what you're doing, you can also lose money faster as well.
Education is the key. Discipline and money management are in the top three as well.
Good luck and I hope that helps!
2006-10-23 05:11:02
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answer #1
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answered by Yada Yada Yada 7
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What you want to find are companies that have higher P/E ratios. If the P/E ratio is high, the company is in a growth mode. They are putting more money back into their business rather than paying out dividends. ETFs would be funds that invest in these types of companies.
Keep in mind, companies in growth mode are more risky investments. If you are leaning toward risky stocks, these are for you. If you want stable funds, find stocks with lower P/E ratios and they will grow steadily and pay out dividends.
2006-10-23 03:36:53
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answer #2
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answered by Anonymous
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2016-02-16 06:47:42
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answer #3
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answered by ? 3
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many responders replied much less risk in genuine factors. perchance and in step with risk no longer. i think of lots could matter on the place the genuine factors is placed. i do no longer think of that people who invested in New Orleans might accept as true with that assement. Or people who invested in genuine factors in Anderson, In. genuine factors has another draw back: genuine factors taxes. they may be a real project. i visit grant that a individual experienced in genuine factors investments might do o.k.. notwithstanding, a individual experienced in inventory industry investments might additionally do o.k.. individually, I even have 0 desire to speculate in genuine factors, different than my abode. i can not say that it quite is been a real large investment different than it saved having to pay lease and that i did get a pair of tax breaks. genuine factors taxes commonplace $1500 a year. insurance $3 hundred a year. maintenance approximately $1500 a year. offered in 1972 for $29,000 modern-day value approximately $one hundred fifty,000. Annual return formerly costs= 4.ninety 5%. Subtract 34 years of taxes, insurance, and maintenance, the return consists of 0.703%. And heck that assumes one paid money, which i did no longer. I took out a financial employer very own loan at 7% pastime. So the nice and comfortable button is this white elephant I call abode has quite wound up costing me money by the years. yet no longer as much as paying lease. Equities on the different quit the long term commonplace approximately 10% annual return. If I had quite invested that $29,000 is sound equities and disreguarding taxes, that investment may be worth $740,882 immediately.
2016-10-16 07:22:55
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answer #4
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answered by ? 4
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