1. Your Questions About Invest In Stocks And Bonds
Sharon asks…
What Stocks/ Bonds Should I Invest In?
I have $100,000 to invest in stocks and bonds for a school simulation. 80% should be stocks
and 20% bonds, because i'm in a aggressive-style group. what should my initial investment be
if we plan to make a lot of money? we only have a handful of weeks, so i need stocks that will
soon be on the rise.
any help is appreciated.
Thanks
Landon.
Steve Winston answers:
If this is not real money and the object of the game is a huge gain to "win" buy calls on SKF
(that's the trading symbol). You'll either lose your theoretical hundred thousand dollars or make
a fortune.
If the object is to learn about the stock market "invest" $10,000 in ten different stocks. Apple
would be one suggestion.
1 / 10

2. Thomas asks…
What other things can you invest in besides stocks, bonds, money
markets, and mutual funds?
I've already invested into a mutual fund, I have a couple cd's already, but I'm wanting to invest
in some of the weird stuff that many people haven't heard of. I'm looking into purchasing tax lien
certificates and have thought about the real estate, but I'd like to find something a little less
complicated than real estate.
I'd like to add I JUST turned 27 a couple months ago.
Steve Winston answers:
Get rid of the cds to start. Stocks already cover much of the other stuff. DBV covers currencies.
IAU covers physical gold. REITS cover real estate. Owning a stock or MF does not mean you
have that base "covered". SIlver also has an etf as does alternative energy; individual &
collective foreign countries; etc. Etfconnect.com 1 help point.
2 / 10

3. Chris asks…
What are some good securities (stocks, bonds, etc) to invest in
RIGHT NOW?
I'm young (20s), have some extra cash (not a whole lot!) and am willing to take a good amount
of risk.
I just need some direction.
Ok. First off I'm in graduate school, working on my PhD.
Second, I'm not BLINDLY doing anything. I just need some direction. I fully intend on
researching any security someone suggests BEFORE buying into it.
Steve Winston answers:
Go into mutual fund investing. Stay away from individual stocks or forex trading until you have
money you can afford to lose.
Mutual fund provides instant diversification. I am talking about the truly diversified mutual fund,
not the sector funds. With a diversified fund, you have eliminated most of the idiosynchratic
(individual) risk of each individual stocks and left with just the systematic (market) risk.
Now you can concentrate on the macroeconomics. Do you forsesee Asian economies
outperforming more mature economies and their stocks selling a reasonable P/E ratio, good,
then consider some Asia stock funds.
3 / 10

4. Do you belief that commodities price will continue its upward rise, good then invest in stock
funds of commodities-producing countries of LatAm.
See where I am going? Very few people has the time and the expertise to properly analyze
individual stocks. Leave that task to the professional money managers.
Linda asks…
i want to invest more and i've already invested in
stocks,bonds,cd's. are there any more left to invest in?
Steve Winston answers:
There are plenty of ways to invest and also plenty of investments in which you can loose your
money.
Farm land. Buy it and rent it out to farmers or go shares
4 / 10

5. rental properties. Maintenance can be a nightmare though, but the tax advantages are terrific
rare coins, stamps, baseball cards, comic books, etc. But you have to spend a lot of time and
energy persuing that venue.
Vacation home. But not in a huricane prone area.
Those are some of your options. Now let's talk stocks
You say you are invested in stocks but how diversified is your portfolio? Do you have 50% of
your porfolio invested outside the U S? Is a portion invested where the future growth is
expected to be? India, China
Nancy asks…
How do you get into investing in stocks and bonds? What should
in invest in ?
5 / 10

6. Steve Winston answers:
To get into stocks and bonds, all you need is a broker. However, you should make sure you
have about 3-6 months of salary saved up before getting into investments.
You should decide on an investment strategy, and an important question to ask is how often
you plan on making changes to your portfolio. Diversification helps reduce risk a lot.
If you are looking for safer investments, index funds are a great tool. The managers of index
funds build a portfolio of all the stocks in a particular index like S&P500. The returns of the index
fund are supposed to be similar to that of the index. Vanguard 500 is one of the most
well-known Index Fund. The minimum investment is $2500. There are ETFs that are basically
index funds. Standard and Poor's Depository Receipts (SPDR) is an ETF that tracks the
S&P500. The DIA is another ETF, and this one tracks the Dow. If you are looking for something
safe, I recommend those three funds. In fact, if you invest in SPRD and DIA, you have
essentially invested in the whole stock market.
Note that investing in mutual funds and ETFs is a great way to diversify your portfolio because
the fees that you pay are lower and you have the advantage of professional management.
Another useful investment tool is to buy stock in Berkshire Hathaway, which is owned by
Warren Buffett. This company is very unique in that it holds stock in a lot of companies. Buffett
is known as the world's greatest investor. Buying stock in Berkshire Hathaway is similar to
investing in a mutual fund because you indirectly expose yourself to many different companies.
Lizzie asks…
Isn't Investing in Stocks, Bonds, etc. the same as gambling? And
what is the point?
6 / 10

7. I have been studying them in my college class. It pretty much seems like pointless gambling. It
says to invest in them but there is usually no guarentee your going to get anything back. Why
would anyone take this risk? And where the heck do they get the money to do it?
Is this like a "Rich People" thing?
Steve Winston answers:
"I have been studying them in my college class. It pretty much seems like pointless gambling."
Damn, you are dumb and in college?
Education is wasted on the young.
Anyways, investing isn't gambling because you can sometimes tell when a company will profit.
How do I know?
Will APPLE INC. Go bankrupt tomorrow? What about Walmart? Amazon? Ect?
Investing is what separates rich people from poor people like you. Rich people take risks and
understand how to play the game called investing.
EDIT: Why thumbs down? Are you afraid of the truth? They are facts. Get over it.
Shame.
7 / 10

8. Mary asks…
Stocks, bonds, etc.-- what is the safest way to invest?
I've heard of diversifying and that some investments (like savings accounts and CD's) simply
earn interest and are supposedly completely safe, particularly if FDIC insured, but I know little
about stocks, bonds, and other types of investments. What do you consider the safest
investment(s) and in what combination?
Steve Winston answers:
What is safest depends on your time horizon for this money. Short term 5 years or less, CD's
are safest (go to www.bankrate.com for the highest CD rates in the nation). But over the long
term (10+ years) you won't be losing money with CD's but in relation to inflation, you may lose
value, or buying power. The CD return over the inflation rate may be very low. Long term,
common stocks have been seen by many to give the "best" risk/return ratio. If you are very
conservative and have trouble sleeping at night holding all common stocks, spreading the risk
around may be the answer. Two choices may be: 1) having 30% of your money invested in
Vanguard's Total Stock Market index mutual fund (covers the entire USA stock market), 30% in
Vanguard's Total International Market index fund (covers the rest of the world) and 40% into
government bonds or FDIC insured CD's. (percentages are adjustable so you can get a good
nights sleep. The 2nd choice would be some form of "guaranteed" annuity. Be advised with
annuities, fees are high, returns are lower than regular mutual funds and the guarantee is only
good as long as the insurance company stays in business (New York state has the toughest
regulations concerning insurance company safety, so if you go this route, try to get an annuity
from an insurance company that also does business in New York State.).
8 / 10

9. Mandy asks…
Do you think majority of U.S politicians invest in stocks and
bonds?
would they understand business cycle well?
Steve Winston answers:
Senators and Congressional Representatives usually have to turn over their financial
investments to a blind trust, otherwise they could be accused of a conflict of interest.
9 / 10

10. Steven asks…
I have about 1600 dollars which I would like to invest. Any
suggestions! Stocks, Bonds, Mutual Funds!?
I am a beginner at this sort of thing and would like to be really carefull where I put my money in.
I need pretty good sites and the right tools to help me make the right decision.
Steve Winston answers:
Open an etrade account and do your research.
Powered by Yahoo! Answers
Read More… Your Questions About Invest In Stocks And Bonds
10 / 10
Powered by TCPDF (www.tcpdf.org)