Investments By: .

Investments

By: www.CandleStickForums.com

Investments come in all shapes, sizes, and types. They are the dedication of current assets for a future purpose.

Money put into a business is a common form of investment

as is the purchase of stocks in order to build a nest egg for

retirement.


Market investments can include common stocks or

preferred stocks, purchased options, bonds, foreign

currency, bank accounts, precious metals and IRA’s.

Successful investing creates wealth.


Investments of money, expertise, and time can be conservative or aggressive, very safe or very risky, and can be lucrative or bring about financial disaster.

Conservative investments have historically started with

buying a home.


That was before sub prime mortgages artificially drove up the price of homes and

then caused a near collapse of the real estate market and the devaluation of many real

estate investment trusts.


Another conservative investment has been to

devote a portion of one’s portfolio to precious metals. Gold bullion quadrupled in price from 2000 to 2009.


Keeping a reserve of cash has always been considered safe and conservative but during the runaway inflation of the late 1970’s the dollar lost a

substantial amount of buying power. The stock market,

over the years, has tended to outperform other

investments.By: www.CandleStickForums.com

Buying stocks can result in multiplying an investment but picking stocks is all important as is ongoing stock analysis.

Understanding return on investment and how to

maximize it, without undue risk, is the key.


Success often starts with choosing which type of

investments to make and them making each individual investment. For example, as a

recession mends itself, the stock market typically starts to go up halfway through the

recession. There will be market leaders and there will

be stocks that lag.By: www.CandleStickForums.com

Many of the laggards will be targets for value investing. Value investing is choosing

stocks with low price to earnings rations or stocks

whose values are low in light of expected earnings. Famous

investors such as Warren Buffett are champions of

value investing.By: www.CandleStickForums.com

In the depths of a recession stocks in companies that

make basic consumer goods do well. The companies do not necessarily make more

money. They simply continue to do business selling laundry

soap, household cleaners, paper towels and the like. They become attractive

because many other companies become so much

less profitable.By: www.CandleStickForums.com

Market timing is important because the best time to

invest in a basic consumer goods company is typically just before the recession

starts and the best time to get out of the same stock is

typically when the recession starts to mend and other stocks start to rebound.


This is not so much to recommend the likes of

Chlorox, Colgate, or Proctor and Gamble as to point out the advantages of market

timing and stock trend analysis.


Looking to the future, investing in companies that have a good track record of turning basic research into

paying products is an excellent bet. Many

pharmaceutical giants got that way by reliably creating life saving and money making medicines derived from basic

scientific research.By: www.CandleStickForums.com

Small bio tech startups often are lucrative investments but

stock analysis, familiarity with the market sectors

involved and the company’s competitors, and knowledge of how a drug moves through the various FDA trials to final

approval is critical to this time of investment.


Investments By: .

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