As a single woman, during this recession is it smarter to save cash or continue to buy cheap stocks?

Question

I'm trying to be smarter than the average person in investing during the recession should I save my money in cash or buy cheap stock.

Answer 1

buy mutuals...and save money by doing your research on the best broker...i started with zecco.....still use it, still very happy. only ones with no fee for stock trades, and no minumums.  it took me some time to see that most of my gains were lost to the fees i paid to actually buy stock and sell it....all the others will charge you fees for trading, but compare and see for yourself!

http://friends.zecco.com/r/a7a2877caab81...

Answer 2

Its hard to tell in a market like this. Sometimes cheap stocks are the wat to go, think Microsoft. But at other times they aren't quite what you expect. Think about emerging markets or invest in products that people are always going to need. Avoid investing in oil, everyone else is and you really might be able to make more money elsewhere. Honda is a great company to get involved with, they have fuel efficient cars and some of the most innovative technology for more energy efficient cars. I would say keep investing but be smart!

Answer 3

save cash

spend less

work more

for the 2 coming years then by stocks

Answer 4

Hummm?  A single woman that knows how to save and invest should be in high demand among males. Darn.  I am probably out of your age range.

What do you mean specifically by "cheap stock"?  I hope you do not mean stocks selling at below $20 a share. Although some of those might indeed be good buys most are not.  If you mean cheap relative to the underlying value of the company, then indeed it is a good time to buy.  A very good time.  But it is also a good time to save cash because these same stocks might get cheaper still, a lot cheaper.  

But only time will tell so a reasonable plan is to save 1/2 and invest 1/2. Sort of hedging your bets so to speak.  If your investments go up you have made 1/2 but if your investments go down you have lost 1/2 as much and still have money to buy more juicy bargains.  

The main problem with investors today is that they do not have a very long memory, perhaps because most are under 50.  I remember well the recession of 1973-74 when stocks lost at least 1/2 of their value and many 3/4 of their value.  McDonalds dropped from 76 7/8 to 21 1/4. PG dropped from 120 to 67, one of the better peforming companies. There are certainly many parallels between then and now.  A lousy president, high gas prices, high inflation, a war that we were not winning.  Probably some others that I have lost track of through the years.

Answer 5

I'd say neither. Depending on your needs go for single premium life or equity indexed annuities, keeping some liquidity nonetheless.  Prices are dropping for a while.  Maybe return of premium life in a EIA universal life policy.  Will you ever marry or have kids?