In school we have been learning how companies will go down on the market then sky rocket. My b-day is coming up and im only 14 but want to invest money into either the stocks, bonds or a mutual fund! any advice??
2007-05-01 14:20:06 · 7 answers · asked by nick b 2 in Business & Finance ➔ Investing
very few brokers will allow you to directly purchase stocks your parents can assist in this and my recommendations is no bonds (you are too young to even mess with the fixed income part the yield is nothing). You can stomach wild rides so ETF's are your better option BUT if you have less than 5,000 to invest then you would be better off in a no load under 1% expense ratio mutual fund. The industry average is $2,000 but thare are some good ones in the $1,000 and lower range. Your primary advantage to mutual funds is that you can reinvest the dividends (and you should). While you could divinend reinvest in anything only a select few brokers will allow it (sharebuilder is the best one out of that group). So if yoru parents have 5k or less then mutual funds otherwise ETF's and good luck.
2007-05-01 15:18:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Stay away from auto industry. It is an old industry and youth needs big growth fun company. Look at stock that you can buy some now and every year for 5 years even if the price goes up or down with the market-only sell if something changes and it is not going to get you to retire at 45.
2007-05-01 15:04:44 · answer #2 · answered by RayM 4 · 0⤊ 0⤋
Some companies go down, then skyrocket. Others go down and stay down for a long time. A solid mutual fund would probably be your best bet, since that way the risk is spread and you won't get hit too hard by one stock that goes down a lot.
Good luck. You're an exceptional 14 year old to be thinking of your future like this - keep up the good work.
2007-05-01 14:26:47 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
I would be more inclined to invest in oil companies than automobile companies. But as one of your responders suggested a good mutual fund is hard to beat.
2007-05-01 15:11:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No, the auto industry is full of large (slow growing) companies.
Check out
http://screen.yahoo.com/stocks.html
and put the Est. 1 Yr EPS Growth: up at 20% per year or more. Thats how you find companies with fast growth in earnings.
Jeff
http://www.best-stock-trading-systems.com/trading_stocks_online.html
2007-05-01 21:23:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Do not put any money on American automobles.Toyota or Honda is an excellent investment.
2007-05-01 14:24:03 · answer #6 · answered by charles 4 · 0⤊ 0⤋
look into electric cars, gas is going crazy. stay away from ford
2007-05-01 14:27:46 · answer #7 · answered by devils415 1 · 0⤊ 0⤋