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best investment for a beginner?
I am currently stationed in iraq and will be coming home with about 5000 dollars i would like to invest, i am just wondering what is my best, moderate risk investment, I would like to see results quickly, possibly in as little as 2 years. any suggestions?
JohnGalt 2:02 pm on December 24, 2009
First things first.
Do you have a few months of expenses set aside in cash (CD, Money market) for emergencies?
Do you anticipate needing this money in less than five years?
If this is okay, then the smart move is to buy into a broad mutual fund family like Vanguard. Go with one of their global funds that invests in both USA and International companies. As you get more money, you can get more fancy with your choices.
But if you have your hear set on learning the stock market, spend some money on education first. The big problem is that online websites have made it so easy to open an account that people think it is easy to make money too. But picking stocks requires some skills, and with only $5000 you cant really get diversified.
Forget about forex unless you really want this to be speculative money you can afford to lose.
juddys mum 2:02 pm on December 24, 2009
stock market is down on its knees. it has always proven to be the best growth over houses and financial institutions… dont worry about all the panic and bad news…just invest in a few solid companies that you know do a good job. in 12 to 24 months it will be stronger than ever.
Clark Kent 2:02 pm on December 24, 2009
If you put it into stocks, buy an ETF which has SPY as its symbol.
It gives you a share in all 500 companies included in the Standard & Poor 500 index.
Buy it through a discount broker to save commissions.
No one can assure you that you will see any kind of good results. If this market keeps declining, it would be best not to buy anything other than treasury bonds, and even that has the risk of inflation.
Barry R 2:02 pm on December 24, 2009
I think now is a good time to invest. Your first investment should always be in the company of one of your favorite products. Then the company should also be reasonably priced (a low PE). Pretty much everything in the stock market is cheap now, but the market could be headed lower. That said, here is my favorite stock (Trinity (TRN) – they make rail cars, river barges, and wind towers, and they have a very low PE):
http://top10traders.com/ViewHolding.aspx?symbol=TRN
brad 2:02 pm on December 24, 2009
Dia or spy. Sit and wait for this market to correct.
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