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My Stock Broker told me to Invest everything I have into FedEx. Do you think that's a good idea?

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h**l NO!

Fire the broker and transfer your account, the broker is an idiot.

Investing all funds in a single stock or fund, even if conservative may be determined to be an unsuitable investment.

I would argue that this recommendation may violate "Suitability."

http://www.mutualfundplanning.com/mutual...

http://www.seclaw.com/docs/397.htm

The broker must also be in compliance of SEC Rule 405.

"The "know your customer" rule of the New York Stock Exchange that requires member firms to obtain significant facts from customers when opening new accounts. These facts are supposed to give the broker and the firm some background on the customers."

http://financial-dictionary.thefreedicti...

I take it the broker has little to no experience?
Report (0) (0) | earlier
Your broker is assuming that things can't get any worse in the economy than they are now.  And if you think this is true.  Then perhaps you should follow his advice.

But there are plenty of economists who would disagree with this optimistic assessment of the economy.   Which means that your investment in FedEx is not a sure thing.  There is some risk that you will loose money.
Report (0) (0) |   earlier
you sure he didn't say FOREX ?????
Report (0) (0) | earlier
Are you sure he didn't say "Send it to me via FedEx?"
Report (0) (0) | earlier
"Everything"???  Taken literally, this means your broker is an idiot.

FedEx is a very well-run company and will be fine in the long term.  Currently its share price has been beaten up over concerns about fuel prices and how that affects their costs.  But it's probably been beaten up a bit too much and is now somewhat of a good deal.  (Although I am not speculating if FDX is going to make a move in the short term, as in the next month.)

But anyone who puts 100% of their money into a single stock is asking for pain and anguish.
Report (0) (0) |   earlier
Run away! Run away fast. Get your money out.
Report (0) (0) | earlier
It's never a good idea to invest everything in one stock.
Report (0) (0) | earlier
NO, NO WAY, NOT TODAY OR NOT EVER.

I is not a good thing to do, and it is a very bad idea.

One of the Cardinal rules of trading is using proper money management.  This rules states that you NEVER invest 100% at any one time, and you NEVER NEVER invest 100% of what you do have invested into any one stock.

Your broker is just excited about this stock, and maybe a little too over excited.  BUT it sound like a typical young naive broker. They are not telling you anything illegal, but they are not being reasonable

You can follow their advice, but it would not be in your best interest to invest everything you have or even a big chunk of what you have.
Report (0) (0) |   earlier
Do not invest everything into 1 stock....maybe put some into the account, but make sure this guy is for real...did you talk to him in person?

Is he from a reputable company?

Make sure everything is in check before doing this....
Report (0) (0) | earlier