Best investing idea for 400.00 a month short term or long term?

Question

Best investing idea for 400.00 a month short term or long term?

Answer 1

Savings Account at 12%. You will have $33,394.55 after 5 years. Or invest with someone.

Answer 2

As at now long term investing on the share market is not very attractive. Shorter term momentum trading will be the most profitable. The market promises to be volatile next say 5 years and you need to be always updating on latest trends.

We are said to be in a bear market. General trend will be down on many exchanges. During bear markets there are always shares or commodities that are in an uptrend and you need a strategy to be able to recognise these.

This could change though if current fear and panic proves to be unsubstantiated.

So perhaps your $400 a month would be best spent intially on education. I am not a lover of Technical Analysis as I find it boring but TA will have an advantage over fundamental  buy and hold strategy in the next few years based on current perceptions.

If you do not want to be an active trader than perhaps invest in some sort of fund that has defensive position.

Answer 3

It's tough to tradd with $400. I would be looking at the big picture.

Long term:

Open a Roth IRA

basic investing ideas.

S&P 500 Index

http://en.wikipedia.org/wiki/S&P_500

S&P Mid Cap 400 Index

http://www.ishares.com

Dollar Cost Average every month

http://en.wikipedia.org/wiki/Dollar_cost...

WATCH OUT for posts that talk about high returns and no risk. They are all money scams. If we could get rich with no risk, we would all be rich like Bill Gates and Warren Buffett.