2007-03-24 12:38:11 · 9 answers · asked by sri 2 in Business & Finance ➔ Investing
If you invest money in just one stock you are subject to a great deal of risk. Any darn thing could happen to that one stock. Your best options are managed mutual funds and index funds. That way your money is invested on a large variety of stocks. Some index funds have more risk than others but they all have less risk than investing in one stock. RSP is an index fund the invests equally in all the stocks of the S&P 500 and it is rebalanced quarterly. The main risk to investing in that is that it invests only in U S companies and is subject to what happens in the U S. There might be more risk to that than you might think, especially since the value of the dollar just keeps falling.
All of the international index funds are more or less capitalizaton weighted I think. But there is certainly something to be said for having ones assets in something oher that dollar based investments, considering risk. One to think about is PID. Another to maybe consider is DIM, an international mid cap fund--capitalization plays less of a role in mid caps. Only been around 9 months but already has a 28% return.
2007-03-24 15:01:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
What products are used by people all over the world, used every day, used up quickly so they need to buy more?
my suggestion - soap, toothpaste, shampoo, cleaning supplies all made by companies like Dial, Clorox, Colgate-Palmolive, Proctor & Gamble. Not only does a company like Proctor & Gamble make enough money to give out a dividend, but they have been able to increase their dividend each year for the past 50 years. I believe Colgate is around 30 years, the others I don't know. That shows me they should be around longer than I will be and is low risk. Just a suggestion, do you own research.
PS Electric power is another product.
2007-03-24 15:01:15 · answer #2 · answered by gosh137 6 · 0⤊ 0⤋
The best stock it would seem for you would be one the provides a "dividend" meaning interest so you make money, with interest "dividends" while you are "invested" in the company. A very good stock of this nature is AT&T. Stock symbol "T" which throws off about 5% a year. Also for saving money in paying commissions, you may what to use a "Sharebuilder" account, which offers $4.00 trades. A quick web search and you will find it. Good luck
2007-03-24 13:48:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Call Vanguard Mutual Funds and tell them you want to get started investing through a total stock market index fund. It paid 15% last year. Good return and not a high risk, plus all the stocks are here in the U.S. Good luck to you. You will do well.
2007-03-24 12:44:38 · answer #4 · answered by Irish 7 · 0⤊ 2⤋
I would go with blue chip stocks only, big companies, you know? Things like Coca-Cola and the such. STAY AWAY FROM OIL. Also, if you have money to spend, the gold market is highly profitable, at a reasonably low risk.
2007-03-24 12:42:53 · answer #5 · answered by xxshortstuffcwxx 1 · 0⤊ 1⤋
Check out Honeywell (HON). It pays a 2.5% dividend and has been around for over a hundred years. The defense contracts just keep rolling in and should continue for the next couple of years.
Best of luck to you.
2007-03-24 14:09:29 · answer #6 · answered by SWH 6 · 0⤊ 0⤋
i like northrop grumman (NOC) or Boeing (BA) which are in Aerospace and Defense; both pretty low risk. I own NOC and it's done me well the past month. decent dividends and NOC has a low P/E. I expect BA to possibly hit 105 by the end of this year.
2007-03-24 16:55:45 · answer #7 · answered by Jason H 2 · 0⤊ 0⤋
How long do you want to hold them?
2007-03-25 11:05:41 · answer #8 · answered by Anonymous · 0⤊ 1⤋
CSCO or SUNW
2007-03-24 12:51:55 · answer #9 · answered by franksprung 3 · 0⤊ 2⤋