Here's some more advanced, slightly politically cynical advice.
If you're planning to just plop money into an index fund, hold your cash for now because you've missed the train.
Look at the SPX, DJIA and NASDAQ performance during the past 3 years and notice the pattern.
Every year, there's a "major" politically-driven economic scandal which tanks the market and then after a few months, things claw to a new all-time high. The (1) threat and (2) then follow-through of the Chinese tariffs with a little bit of chaos after the election of the Squad and their Green New Deal, then (3) COVID.
After we win, the Dems even as a minority party will cook something up and you'll get another chance to invest come mid-2021.
In the meantime, there's a ton of other stuff you can do with your money. This is the best time to finance a house purchase in perhaps a generation so try that.
Another bit of advice is. Do you have debt? Get rid of it. Interest is the eater of capital. That and taxes. A good way to 'feel rich' is to have everything paid for. It is not necessarily the best way to invest but it sure feels good!
Oh absolutely do not disagree one bit. The day I paid off my mortgage was a great day. +1800 a month. I wish I could find an investment that did that. Just remember interest even at low rates steals from your capital. Now if you can make that capital work for you then no biggie. But I am not that good at it. Capital loans make sense when you are basically reselling the debt to someone else. For example rental agreements investing into a business etc. But for a dingaling like me? Not so much. I max the 401k, invest into stocks I think will do good. Then re-eval every 3-6 months. Do not panic buy/sell. Slow and steady and you can get rich (note the 'can'). And for God sake start when you are young (like 10 years old if you can).
I was paying 2400 a month to get 200-300 back a month in taxes. I rather keep the other 2k, that is just me :) But really do what you think is right. Seriously, if it is working for you go for it. I am currently evaluating if I should borrow money to buy a second house. Sell the existing or combo it up with liquidating other assets. The math looks to be borrow right now. But that can change. So run the numbers and work it out.
I am not saying my way is the best. In fact I could if I wanted tell you what it cost me dollar wise. It just was so liberating. There are better methods out there! I just wanted to share my story of freedom from the banks.
Don't try to time the market. Thats how you lose. If you have extra cash you are comfortable forgetting about then go ahead and buy some stocks. If not, but you still want to invest then look into mutual funds or index funds.
Perfect timing can get you a bonus 20% still from "recovery stocks" like Hilton, Marriott, Darden Restaurants, Kohls, etc, but I would avoid the risk of potentially losing 50% in the short term. Roll with good reliable stuff like Visa, MasterCard, Pepsico, Lowes and Microsoft and enjoy the bright future with very little risk.
Good advice from Tappen.
If you’re just learning about the market start small.
The SPY (S&P), QQQ or VUG (NASDAQ) funds are good places to be..at least they have been for me.
Just a tip...watch Apple.
It will begin trading Monday 8-31, after a 4/1 split.
Could be a good time to get in at a lesser price.
Full disclosure, I own all of the above.
Good Luck to you
Don't try to do it yourself. Even seasoned day traders get burned. Get an account at Ameritrade or Merrill Lynch, and have them put you into some good growth pools. Read their analysis. Then dabble a little on the side with individual stocks. If you have to ask, you shouldn't be day trading. Making a killing on big events means being set up to do so in advance. Go for long term, stable growth.
If you want to experiment, go get a free account on Morningstar.com, and buy/trade fake orders. See how you did 6 month from now with your picks.
And whatever you do, stay away from futures.
Me, I was set up for long term. I got hit, but it wasn't that bad, and with some solid advice from my guy, we're back on track to real growth. I don't day trade, not liquid enough for that.
Is it too late to get in there? or did i miss the train
Here's some more advanced, slightly politically cynical advice.
If you're planning to just plop money into an index fund, hold your cash for now because you've missed the train.
Look at the SPX, DJIA and NASDAQ performance during the past 3 years and notice the pattern.
Every year, there's a "major" politically-driven economic scandal which tanks the market and then after a few months, things claw to a new all-time high. The (1) threat and (2) then follow-through of the Chinese tariffs with a little bit of chaos after the election of the Squad and their Green New Deal, then (3) COVID.
After we win, the Dems even as a minority party will cook something up and you'll get another chance to invest come mid-2021.
In the meantime, there's a ton of other stuff you can do with your money. This is the best time to finance a house purchase in perhaps a generation so try that.
Another bit of advice is. Do you have debt? Get rid of it. Interest is the eater of capital. That and taxes. A good way to 'feel rich' is to have everything paid for. It is not necessarily the best way to invest but it sure feels good!
Oh absolutely do not disagree one bit. The day I paid off my mortgage was a great day. +1800 a month. I wish I could find an investment that did that. Just remember interest even at low rates steals from your capital. Now if you can make that capital work for you then no biggie. But I am not that good at it. Capital loans make sense when you are basically reselling the debt to someone else. For example rental agreements investing into a business etc. But for a dingaling like me? Not so much. I max the 401k, invest into stocks I think will do good. Then re-eval every 3-6 months. Do not panic buy/sell. Slow and steady and you can get rich (note the 'can'). And for God sake start when you are young (like 10 years old if you can).
I was paying 2400 a month to get 200-300 back a month in taxes. I rather keep the other 2k, that is just me :) But really do what you think is right. Seriously, if it is working for you go for it. I am currently evaluating if I should borrow money to buy a second house. Sell the existing or combo it up with liquidating other assets. The math looks to be borrow right now. But that can change. So run the numbers and work it out.
I am not saying my way is the best. In fact I could if I wanted tell you what it cost me dollar wise. It just was so liberating. There are better methods out there! I just wanted to share my story of freedom from the banks.
Don't try to time the market. Thats how you lose. If you have extra cash you are comfortable forgetting about then go ahead and buy some stocks. If not, but you still want to invest then look into mutual funds or index funds.
Perfect timing can get you a bonus 20% still from "recovery stocks" like Hilton, Marriott, Darden Restaurants, Kohls, etc, but I would avoid the risk of potentially losing 50% in the short term. Roll with good reliable stuff like Visa, MasterCard, Pepsico, Lowes and Microsoft and enjoy the bright future with very little risk.
Good advice from Tappen. If you’re just learning about the market start small. The SPY (S&P), QQQ or VUG (NASDAQ) funds are good places to be..at least they have been for me. Just a tip...watch Apple. It will begin trading Monday 8-31, after a 4/1 split. Could be a good time to get in at a lesser price.
Full disclosure, I own all of the above. Good Luck to you
It has and will hopefully continue. Most everyone I know has an Apple of some sort.
FTEC and ARK-invest funds are also interesting for growth.
Don't try to do it yourself. Even seasoned day traders get burned. Get an account at Ameritrade or Merrill Lynch, and have them put you into some good growth pools. Read their analysis. Then dabble a little on the side with individual stocks. If you have to ask, you shouldn't be day trading. Making a killing on big events means being set up to do so in advance. Go for long term, stable growth.
If you want to experiment, go get a free account on Morningstar.com, and buy/trade fake orders. See how you did 6 month from now with your picks.
And whatever you do, stay away from futures.
Me, I was set up for long term. I got hit, but it wasn't that bad, and with some solid advice from my guy, we're back on track to real growth. I don't day trade, not liquid enough for that.