if you don't have enough time or interest to study and research stocks market; is it a good idea to buy some

Question

different Indexes and wait for them to grow; what is your suggestions or opinions on this strategy; I have heard that indexes growth in genral is good and they are less riskier than regular stocks; Thanks for your response

Answer 1

yes, stick with index mutual funds or plain old mutual funds if you don't have the time/interest/expertise. you're hiring the fund managers to work for you. look for no load funds with low expense ratios. vanguard has many index and non index funds that fall into this category. poke around on morningstar.com for ratings/info on various funds.

I like and own VTSMX - which seeks to mirror the u.s. stock market as a whole and has very low fees. If you own more than 1 or 2 funds, one of them should be intl - here I like DODFX but of course you'll have to check these out yourself.

I believe fool.com has some articles on choosing index funds as a safe and easy way to invest long term.

Finally, unless you have a decent chunk of change, a financial advisor is probably going to be too expensive. If you go that route, you might want to try Edward Jones - they focus on little guy investors. If they're not interested in you, you probably need to go it alone - at least for now.

Answer 2

You are sort of on the idea. First, an index is often a representation of something, not the whole thing. For instance, Ishares.com has an ETF (Exchange-traded fund, it sells like common stock) of the Dow Jones U.S. Total Market Index Fund, IYY. It holds some 1,580 stocks, diamonds, dogs, and all. Powershares.com has what they call the RAFI US 1500 Small-Mid Portfolio, PRFZ. Now if you have any logical reasoning capacity in your noggin, if the Powershares people found 1500 companies that were merely small to middle-sized, then the 1500-ish companies of the IYY (Ishares) are not the "U.S. Total Market". This isn't misleading, it is representative, a sample that reflects to some degree the whole.

Bear in mind, if you choose something so broad, you buy a boat load of losers along with the winners. One of the common complaints in children's athletic leagues is the amount of "play" that each child gets in the game. When teams or leagues are set to produce winners, then the good players get a lot of time on the field or court, and the poor players get little or no time. This makes those who insist upon winning happy. This makes those whose child isn't as stellar an athlete very unhappy. Of course, there are those leagues that insist that every child will at least play half the game. This makes the second set of parents pleased, and the first set of parents constantly fuming and about to boil over. Historically, the general market grows generally well. If the market today behaves like 1946, yep, you'll do well. If the market today behaves like 1929, you are going to lose your shirt. Certainly you don't have to watch your holdings every day or every hour if you've generally invested for the long run. But there are some choices better than others. Look up DIA, SPY, NY, IOO, (and maybe make a little room for PXN), and think about these for your short list of solid, diversified stocks--a few more diamonds, a lot fewer dogs. Then check in every three months or so. Good luck.

Answer 3

While one have no enough time or interest to study or research not only stock market but also any business, it is best to be keep quite.

Any how, if any one interested, at least, in earning profit out of the investment, I suggest to invest while the market goes down abnormally and wait until your investment gets more than 50 % of the investment, which you could achieve and you will get intrested to study and research stock market with sufficient time. For any consultancy approach me without any hesitation.

Answer 4

Index funds would work. Probably the best would be a total stock market index fund and a foreign index fund.
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Answer 5

Forget advisors, if you dont have much money you will spend more on them than you will ever make. Plus advisos count on their company's analysts, and i can tell you that i dont trust that either. Anyone can pull a chart and tell you where the cup handle begins. keep you money and invest in something you know! Real estate is still a good investment, you get to live in it, and see it. Now maybe bad times for mortgages but its a great time for prices. People have to live somewhere.

Answer 6

stock index funds are among the safest of investing in stocks...stick with the sp 500 or total index from vanguard or fidelity

Answer 7

start buying stocks of things you like or know of like apple or mcdonalds or microsoft or gap or applebees..the stock market always dipps and then bounces back but look for a company that you will have steady growth which makes it less risky...there are other ways to invest like the bond market which is even less risky than stocks

Answer 8

yes - buy indexes - look at vanguard - they don't charge much - also - you need to diversify outside the U.S. - if your young - i would say no more than 60% should stay here - put the rest in asia, s. america, and europe. - vanguard has index mutual funds for all these

Answer 9

Never, ever invest in anything you are not qualified to understand. For instance, think necessities, you probably have a pretty good idea on how food effects the economy . . .

Answer 10

Don't buy anything you don't understand. "Getting Started in Stocks" by Alvin Hall is a great book for beginners. Then make your decision.