Jan 09 2009
Should you buy stocks now?
Yesterday, I was asked by a visitor if we should be buying stocks now. The answer is: it depends. I know you hate to hear that. Definitive answers are much nicer. However, let’s run through a couple of big questions first:
1. Can you live with losing some of your investment value should the market drop even more? Do you have the time to do so? If you are over 55, consider that this economic downturn could last many years, and you need your money to be safe. Losing value is not a luxury you can afford right now.
2. How old are you? If you are in your 20’s, you have sixty years to recover. Most likely you will do so.
3. What is your risk tolerance? Do you lay awake at night worrying about your investments? Don’t buy stock today, then.
4. What is the goal of this money? Is this for retirement? Check your age. If you are over 55, it’s not a good idea. If you are 20, go for it. But if this is money for college in the next three years, or to keep in case of an economic emergency, leave it in cash.
5. Is this to make a quick profit? It’s on the fence as to whether or not the market is going to go up in the near term. You might be better investing it another way.
6. How much do you know about investing? Can you pick a stock based on a good P/E? Do you know how to read a company’s financial report? Or would you be buying based on a hot tip? Do you understand trends in the market? If any of those answers are”no” then maybe this is the time to educate yourself about taking better care of your retirement money.
Warren Buffet, as you know, is investing heavily in the market right now. He is what is considered “smart money.” These are investors who study the markets and companies. They live and eat and breathe investing, and they got bonked in 2008. It is part of the growing season of stocks.
Personally, I am buying oil stocks soon. I may buy gold again soon. I left my high yield dividend stocks in place, even though they corrected. But I am not convinced the bloodbath is done. Businesses are still closing, people are still losing jobs. I’ll put my feelers out in a couple of weeks.
This is US Free Work From Home here. I wanted to let you know that the answer to your question is “the same as what you make with the first.” If you make $1 per post then you make the same thing with the second. Hope that helps.
i guess if you have the enough cash, then go for it. I will not stay low long, whatever came down will go up
htpp://stretchyourdollar.today.com