What Is Stock Investment?

Several years ago, while fielding questions at an AAII (American Association of Individual Investors) meeting in Northeast NJ, a comparison was made between a professionally directed “Market Cycle Investment Management” (MCIM) portfolio and any of several “High Dividend Select” equity ETFs. There are other types of investment options other than the three mentioned, but mutual funds, bonds and stocks are the most common. Always ensure that you or your financial advisor draws up an appropriate investment strategy for you that incorporates your risk profile, timeframes and financial goals.investing

These and many other types of activities fall into the category of investing and yet many of these avenues greatly resemble running a business. Not only can you invest in the stock market, but you can also invest in real estate and other properties. Low risk investments are predominately cash, fixed interest and superannuation.

This theory is based a bit on famed investment guru Peter Lynch’s theory of “invest in what you know.” Peter believed you should put money into companies that make products which you see and use every day (and products that you can’t live without). Finding out the current revenue streams and reliable financials are the challenge that you will face but you must put in your time before a single dollar is invested.investing

Obvious advice, but many people fail to follow it. Many people think that they are on the right financial track by paying off the mortgage on their family home and then buying another property for investment purposes. It comes with a unique approach for the eager stock market players to buy and sell stocks.investing

An MBA degree in finance is preferable, as it will equip you with all the skills that you need to analyze the markets and ground you well in fundamentals of financial analysis. Don’t be discouraged, however; overall, the market has averaged increasing 9{29605dee68c1b183c971296e05b1536e8a9cef6d5d48c9b4ef1206285b877a40} annually since its’ inception, and despite the risks it carriers, is still an awesome place to invest your money.

Tagged with: