I do not speculate. First I look the past performance of the company then look at the future outlook. If valuations are OK I will invest.
Track record is important. For individual stocks, PE ratio, PEG ratio, and how the company compares in these valuations to its peers. Then look at the macro-climate. Seasonality should be considered. It's better to invest in the Fall than May or June after a seasonal run-up. Overall I prefer the built in diversification and simplicty of ETF's. Lots of approaches to investing.
The term "Investments" encompasses an extremely wide variety of products -
If you choose investments on your own without any quote unquote, "Professional" assistance, it can evolve into a very difficult and often times confusing endeavor rather quickly - The shear number of options in Real Estate, Debt & Equity Securities, Precious Metals, Collectables etc. containing varying degrees of complexity of which the novice would need to become educated on, is unquestionably a daunting task even for those individuals who might be considered "Sensationally Savvy" prognosticators -
If however you decide to employ the services of an "Advisor/Planner/Accountant" or other professional to help you choose wisely, the first step in the overall portfolio planning process is for the agent to perform a complete and thorough evaluation of your financial Situation/Condition to accurately gauge "Suitability". This is an essential element required by law and the NASD before any "RECS" can be made - A financial profile must be Crafted & Drafted and the findings subsequently applied to your individual situation by the Advisor, one in which includes documented INCOME STREAM - NET ASSETS - CURRENT INVESTMENTS - RISK TOLERANCE etc. - And then, and only then, can an overall investment selection strategy begin to take shape - "Choice" of investments subsequent to financial enlightenment, is then usually overridden by "Suitability & Common Sense" making the process that much easier - Just A thought -
Always consider "Fundamentals" when investing in Equities & Debt Securities -"Mild Year Round Climate" when investing in Real Estate - Unless it's a Ferrari, Lamborghini, or Gibson Guitar, simply flip the coin of your choice when investing in "Collectables" -
Past performance is no guarantee, but it can at least give you an idea of the volatility. I look for funds that have outperformed the indexes over the past decade or so. Index funds are also a good place to start investing. I generally stick with mutual funds. For retirement, I go with "target date" plans that start risky and gradually become more stable as the specified date approaches.
Start by looking at what has already been done. Strategy screeners with backtesting capabilites are out there. One that I use is Portfolio123. Use the code HKURTIS to get a 45 day free trial and see what I mean. You can mimic trading styles of Warren Buffett, dividend growth, high-growth, whatever plus you can see whether it really has made money over the last 10 years or is some outdated concept no longer relevant.
by alexd1818 years ago
I'm looking for some advice from anyone who has done investing or personal finance planning before. If you had a 5-figure sum of money and wanted to grow that amount into more what would be the best way to utilize it?...
by Keith James Kennedy3 years ago
What is the easiest way to invest your money?
by vineetanit9 years ago
stock market have been corrected more than expcetedworld wide now you can invest in blue chipes
by young inv9 years ago
Hello everyone , im 18 and am learning to be a carpenter in my second year , I have recently become interested in investing money i have saved into something , i come up with theories at work about why such and such is...
by Daddy Paul7 years ago
What would make a good investment hub? I am running out of ideas.
by Stacie L5 years ago
I've read the hubs on REITs but would like more up to date information on getting dividends on mREITS.I have friends who are trying to convince me to invest in these.i don't have a lot to invest now so anyone want to...
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.