looking into investing and was wondering what the terms met first of all.. and why they are important in establishing a program.
2007-05-12 07:03:23 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
It is important to keeping a balanced portfolio. If one sector goes down, most likely another sector will go up to balance out your portfolio to having an even income. If you have all your eggs in one basket and that stock crashes, then you lose all your money. Ouch!
2007-05-12 09:59:46 · answer #1 · answered by darrenwelsh429 2 · 0⤊ 0⤋
If you are just starting out..go to Vanguard (on-line) and go into a NO LOAD mutual fund that covers a large variety of stocks like the DOW 500 or Russell 3000. This will give you ownership in hundreds of different companies. Then just watch them go...don't get freightened if it goes down from time to time. You will be diversified and pretty safe.
2007-05-12 07:22:25 · answer #2 · answered by gvh 3 · 1⤊ 0⤋