What is good to invest in right now?

Question

and are you gaining or losing money? i know the market is down, but how long do they suspect that people going to see negative growth in their accounts?

Answer 1

Stocks are NOT on sale, as many in the media, etc. suggest. Stock investing is not like buying a shirt, just because it is cheaper doesn't make it better. Stock history tells us that stocks with superior earnings, profitability, etc. will be priced higher, and PE actually has very little to do with stock price action.

Having said that, in the current market, taking long positions in the market is not advised. Sure, the market could bounce higher, but there is currently no leadership and all the indexes are trading well below their 200day moving average and who knows where the bottom is. I don't think the concern should be a little more downside, look at the prices of many of the socalled 'bargain' stocks. Have they dropped a little in the last few weeks? No. They have dropped 10-20-40% in a few weeks, when the market has dropped 5% or so. Therefore, a little downside risk is not the concern, a major downside risk is.

Therefore, in this market, if you are experienced, shorting is one option. Option 2, at least minimized major downside risk buy buying an index ETF, such as QQQQ(nasdaq), SPY(S&P500), or DIA (DOW), if you feel strongly that a bottom is in and you are a quote 'long term' investor. Whatever that means, which frankly to me means, you're just want to take a buy and hope approach to investing. True, over the long term the market does rise, but that doesn't mean you won't suffer thru some major 20-40% declines in your portfolio. Are you read for that? Most people aren't.

So, if you want to go long, wait for the market to show some signs of stock leadership, wait for the indexes to at least recover to their 200 day moving average, which is a major point of support in EVERY bull market.

Answer 2

Great question, but it depends on you, are you a risk taker?

Are you a contrarian?

Are you investing long term or short term?

How much do you have to invest?

All of these questions must be anwsered first.

My friend is a risk taker, he has over $500,000 in the market and he likes to put about 10% or $50,000 into speculative investments. On last Friday he bought 10,000 shares of FRE at $4.70 per share and sold it today, Monday morning, at $9.00 per share. He made  about $40,000 on a $47,000 investment, he would tell you that was good. But are you willing to risk losing all your investment like he is?

Can you afford to lose all of your investment like he can, after all if he lost the $47,000 that is only 10% of the money he has in the market.

Long term, stocks are on sale right now in this Bear market, if you buy good companies and can wait at least 5 years you will see a great return.

Short term, maybe you shouldn't fight the trend and you should short the market, or buy oil stocks, or commodities, again a lot depends on you.

If you want more info, just email me!

Stu

Answer 3

what to invest in now is the 164 thousand dollar question. I'm down, and the only things that seem to be working are energy and that is incredibly volatile.  If you are in the market, stay put, buy some more if you have cash.  If not, wait to get in, which is getting close, but not there yet.  tba

Answer 4

the future is unweary as a lot of national funds seem to be backing foreign policy (War and aerospace and defence) producing weapons and artillery. you have to ask yourself where does your tax go. The credit crunch has not even hit yet and people are really feeling it now. the only industries doing well at the moment are Oil, renewable fuel companies mining and strangely enough travel companies. (UK Check the independant business section) (US Check the reuters website).