@bforrester420 said:
@chikenfriedrice: You really should. I wouldn't recommend individual stocks unless you somewhat closely follow the market. I've got a few plays that I like. For example, buying big airline stocks while oil is high (because expensive fuel drives down their profits) because the airline stocks tend to be cheap, then flipping the other way when oil is low (sell airlines high and buy the oil majors like Chevron, Exxon low), etc.
Best bet is ETFs if you don't want to do a bunch of research. They're like mutual funds, but you can buy them outside of retirement accounts. The key is to buy cheap, Index funds (Vanguard), buy them at regular intervals (look up "dollar cost averaging"), and reinvest dividend payments.
Mmm... for the beginner, you're making it sound a lot more complicated than it is.
A lot of people get burned by investing in stocks because they can't see past the number crunching and technobabble, instead relying on their broker to give them "the best deal". And then the myth gets formed that "people lose money in stocks". Duh, because you remained absolutely ignorant of what you're investing towards.
The real genius is having the ulterior vision to see who's going to be valuable within your given time frame, and it's little to do with those weird fucking numbers you get in stocks, and all to do with just reading the times.
For example, a lot of people right now should look into Fiat Chrysler Automobiles. All of their car marques have solid futures, in particular Alfa Romeo, Maserati, and Ferrari, who seem to be building the right cars and having solid support to increase their values in the next ten to fifteen years. Incidentally, Ferrari is opening itself up to public ownership.
Toyota could be onto something new with the hydrogen fuel cell technology they've come up with. And of course Tesla will still continue to increase in value especially with the deals they've got going with the government and with other car marques.
On the flip side, nobody should be buying into any of the four big movie studios at this moment. If you want to invest into the entertainment industry, your best bet will actually be any telecommunications company, as they will be the key players in entertainment distribution in the future. Movies, music, and video games will soon move to an exclusive on-demand digital release. Whatever telco strikes deals with the entertainment companies will be the winner.
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