Your Questions About Stocks And Bonds Basics

James asks…

Advice for a very young investor?

I am 18 and interested in investing small amounts in the next year (I’m hoping up to $4000 at least) in stocks and bonds. I know the basics of investing as in college my classes have started to dive into finance and business. I’m looking for specific advice. What to look out for, for instance. And maybe how much percentage-wise in comparison with each other I should invest in stocks, bonds, and other investments. Any ideas on how I should get started into looking at corporations and such to invest in?

financi4 answers:

You must know and understand the economic situation which is a primary effect in the stock market.
You should know what is the best time to buy stock, and to sell it.
You should have good knowledge about the company and its share price history.

In your question, i can understand that you want to buy stocks next year, and hold them for some time. So, in this case, you are looking for a company that may grow somewhere 10% – 20% over the next year.
My advice in this case will be in APPLE, ORACLE, Exxon Mobile, Las Vegas Sands, Chevron, Intel… Etc.
Some company’s stock is very slow in growing such as Microsoft. However, this company pays around 3% in dividends per year. So, you can say 3% extra on the top of $4000 is guaranteed, but who knows, the stock may fall good down.
In this case, you should look for stocks that are most likely to be more expensive over the time, and at the same time paying high dividends.
This can be found in companies such as Chevron and Las Vegas Sands.
If you look for a company that has narrow stock movement and pays high dividiends, you should consider:
Duke Energy which pays 5% dividends a year.
Coca Cola which pays almost 2.75% a year.
Apple doesn’t pay any dividends but I am very confident that Apple and Oracle will increase at least 20% over the next year.

Here is my final advice, try to analyze the stock movement of all the companies i mentioned and wait till the stock to move good down befre buying. Spend 2 – 3 months anaylizing before investing.
Google Finance is very helpful to guide you to find your stocks.

Michael asks…

What is a good investment strategy? What do you need to know to invest?

i dont want to actually invest, but im just trying to learn the basics. what is the importance of diversification? what’s the difference between stocks, bonds, and mutual funds? what factors lead you to invest in a particular stock?

financi4 answers:

Diversification means not to put eggs in one basket. If you drop the basket, all eggs gone. But if you put them in so many basket, drop one only lose one, you still have the rest. Mutual fund is a portfolio which buying a lot of stock/bond. It main purpose is to diversified the risk, while achieving the rate of return. Stock is ownership of a company. Bond means lending money to company and earn interest, just like the bank lend you money, and you pay back with interest.
There are so many factors lead you to buy a stock- can’t list them all.

Powered by Yahoo! Answers

read more

Your Questions About Investing In Vintage Guitars

Richard asks…

How many of you invest in a guitar ?

Just as you invest in a painting, sculpture, vase, real estate, vintage cars, a Harley, etc,a good quality guitar in good condition will appreciate greatly especially if the tone has seasoned well after the years.

A relic guitar will do the same if it had been used by a well known guitarist.

With the amount of guitars in the market since the early fifties, how many of such guitars qualify to be a good invest?

financi4 answers:

Most guitars of high build quality dating pre-80″s (and even some 80’s) are a good investment assuming that they play well and have all or most of the original parts to them. Be careful though, it’s a lot like real estate, when the market is up, it’s great and when times are tough, well it may be worth holding on to your vintage axe until the market is right again. Personally, I don’t think any guitar is worth more that a couple thousand, no matter what, with the exception that it was Elvis’ or John Lennon’s guitar or something like that, Music comes from the notes you put into it and an old guitar doesn’t make you better, it just makes you a pain in the ass guitar snob who through the powers of suggestion, get people to pay hugely inflated prices on a piece of wood connected to another piece of wood and then has strings on it, I’m mostly talking about electric guitars here though. Acoustics, well they do get better with age – most of them assuming they don’t warp out anywhere and then yes, I can justify paying whatever it takes to get that specific tone. Given that rock music has been a mainstay for 30-40 years now I will be interested to see what collectors find most valuable in the next 20 -30 years. I think solid body Les Paul’s, (a true rock guitar) will be the best bang for the buck as far as investments. My generation (younger) will want to play a Les Paul over a Gretsch Country Gentlemen for example most any day of the week. So ya solid body Gibson is where I would put my coin if I were to collect. I think the older solid body Gibsons will appreciate two fold where the older hollow / semis might be worth only a little more than what they are now. Though a nice older ES335 semi – Man that’s the cat’s meow in my book!

Thomas asks…

What are some good bass guitars for beginners?

So I want to buy a bass guitar – I have no experience with bass so I was just wondering which one I should buy. I have a budget of around £300. Also, can I plug a bass into a normal guitar amp or do I have to buy an amp made for bass?

financi4 answers:

To deal with the amp question first: a guitar amp will produce notes when you play a bass through it, it won’t explode or anything. If that’s what you have, and the budget is tight, it will be OK to use just for learning and practice in your bedroom. Guitar amps, however, are not designed to handle the deeper frequency notes that the bass produces. You won’t get good tone nor very good volume out of one if you’re going to play with a band or in public. So you should invest in a good bass amp as soon as you’re able to.

As far as buying a bass goes, the best thing to do is just go into a guitar shop and hold some in your hands. Some people like big round chunk necks, other people like slim “fast” necks, and so on and so forth. Pick an instrument that feels right in your hands and that you like the look of. It seems superficial, but to be honest, people usually are reluctant to practice an instrument if they hate the look of it.

I’m not sure exactly what brands are available in the UK or how far 300 pounds will go (I’m in the US), but you should definitely try a Yamaha or Squiers in the Vintage Modified or Classic Vibe series (not the Squier Affinity series). The Yamaha RBX374 would be great, or a used BB414. The Peavey Millenium is also pretty good IF you want a super-slim neck.

Steven asks…

Which guitar would be better suited for a beginner?

I’m having a hard time deciding on a guitar for myself (im a beginner) and I was thinking either the Epiphone Les Paul Special 2, or the BC Rich Warlock Red Bevel. Price really isn’t an issue so much as quality and ease of use.
Could someone tell me which one would be a better purchase?

financi4 answers:

“Epiphone is more versatile than BC Rich”. What a crock of nonsense! It sound more like the author of that answer doesn’t like BC Rich.

So, to decide which guitar is better depends on which BC Rich Warlock you’re talking about. From what I can tell, the guitar in question is part of the BC Rich Bronze series with a fixed bridge. It’s junk, so forget it. If you want a BC Rich, the lowest quality Warlock that’s worth playing is the Platinum Series. You can find a good one for a decent price on eBay. It has a tremolo (floating bridge) and it’s a nice guitar. The only thing you might not like about a warlock is that it’s rather pointy if you want to practice sitting down.

That pointiness has never bothered me, however, because I usually noodle laying down on the sofa or practice seriously standing up. All my guitars are pointy – custom Warlock, vintage Flying V, etc. But if you like to practice seriously sitting down, a warlock might drive you crazy unless you are tall and the points don’t hit you in the boobs.

Now, the Les Paul – in your case an Epiphone – is a very chunky ax. Personally, I don’t like the feel of the body because it is thick and I don’t like the bridge because it always feels too high and in the way when I want to palm mute. That’s just my feeling. That doesn’t mean it’s not right for you. Ace Frehley – the master of feedback – has always played a Les Paul. (Whether he can play anything else is … Ahm.., er… No comment!)

One thing I like about both BC Rich and Gibson guitars is that they have a D-shape neck, which is thick and round. It’s easy to rest your thumb on the back of the neck if you want to play fast neoclassical or metal riffs, and you can easily wrap your hand around it if you’re playing rock and use your thumb to fret the lower strings when you’re playing power chords. Vivian Campbell does this a lot if you happen to watch his videos.

That said, the only Epiphone Les Paul worth playing is the Studio Elite . Again, you can look for a good used one on eBay.

The problem with both guitars you have listed is that because they are complete crap, you will disatisfied 6 months from now and you won’t be able to sell either one for what you paid for it. So, you would be much better off to invest a couple hundred more dollars and get a real guitar – one that has decent wood, decent workmanship, will stay in tune, has good sustain, will hold its value over time, and one you will still be happy with it 2 years from now when you can shred like a madman.

A Platinum Series Warlock used will cost you about $400 and the Epiphone Studio Elite about $550. Of the two, I think you get more guitar for your money with the Warlock.

However, if you insist on something cheap, then get a Fender Mexican-made Stratocaster. The workmanship is good and if you test drive a few of them, you will find one with good sustain. Or consider a Yamaha guitar. Even their cheap ones made in Japan are decent. Do NOT get any guitar that’s manufactured in China.

Because you are a beginner, consider purchasing a Marshall Pocket Amp for $40 instead of a bigger amp at this point in your guitar career. You can put a pocket amp anywhere you want to practice and it is surprisingly loud (enough so that someone in the next room will tell you to turn it down). You might want to get a fuzz pedal to go with it and DOD makes some good ones, so get a used fuzz or distortion pedal on eBay. Save your money for a bigger amp after you’ve played a year and have some idea what kind of amp you want. I have a Marshall pocket amp and my pro musician friends think it’s cool.

Powered by Yahoo! Answers

read more

No conflict of interest with companies investing in my firm: Nitin Gadkari …

No conflict of interest with companies investing in my firm: Nitin Gadkari …

New Delhi: All of last week, BJP president Nitin Gadkari was the focused target of Arvind Kejriwal's anti-corruption expose. Political opponents seized the opportunity to level charges of their own, accusing Mr Gadkari of using shell companies to fund
See all stories on this topic »

read more

Your Questions About What Is The Stock Market Today

Thomas asks…

What do you think is going to happen in the U.S. stock market today, Aug. 16th?

Justin answers:

The Dow will lose 30 points (give or take), the S&P500 will lose about 5 points, and the NASDAQ will lose 2 or so points.

(When I am eerily correct and you give me “Best Answer”, I’ll tell you how I did that and why it almost always works….)

Robert asks…

What do you think will happen in the U.S. stock market today? Are there any influencing factors today?

Justin answers:

Currently the Dow Jones futures are +173 largely because the last months consumer price index was flat, a better than expected reading. Also after yesterdays drop you should anticipate a bounce of sorts provided there was no more bad news. My guess is that the initial gains will hold and the market goes plus for the day however other factors may come into play as the day proceeds.

Donald asks…

Investing into the stock market maybe?

Is it smart to invest in the stock market today is Feb. 10 2009? If it isn’t is there a time that if will be? If it isn’t smart what about a cd or if you have any other things related to that. Also i am just in High School and don’t know much about it.

Justin answers:

Market’s too jittery right now. I’d look at the dow and set a point of entry either 500 points lower or 500 higher. To get more of a direction. I don’t see anything jumping to the sky right now, other than shorts. So no real hurry to get in a long position for a newcomer.
A cd is smart with your local bank. Not a big %, but safe. Being in high school is a good time to start investing responsibly for the future. Plus you’ll have enough time in case you lose a big portion of your money so young.
What stocks, sectors interest you?
Dia or spy are good for long term holds. Oil’s very cheap by the barrel also.

Powered by Yahoo! Answers

read more

Your Questions About Stocks And Bonds For Beginners

Donald asks…

guidelines to beginners for buying stocks and bonds online (in euro)?

I would like to find simple guidelines for total beginners to understand better the investment possibilities for privite persons. I prefer to invest small amounts first (not more than 300 euro) to get experience and to see how the system is working. I would like to start
investing though my french account in euro.I wonder whether I can do it on my own or whether I need an official broker to do it and what the good sites are to learn more about the opportunities in this area.

financi4 answers:

1. Define the risk you are willing to take.
2. Start small with investment funds (not stock market).
3. Buy the funds accordingly to the risk you defined, their defined risk, their current evolution (note: past revenues are not a garantee of future revenues);
4. Get to know better the market…
5. After you manage to invest in confort in investment funds and if you want bigger risk then start to look at the stock market… By then you should already have realized a couple things about the evolution of markets.

Just my 2 cents.

Paul asks…

Beginner with question on how to start trading stocks, bonds etc., online!!?

Im a 20 year old college student. Before I begin, let me say that I do not have a job right now—I usually only work in summers. Anyways, I have always been interested in the stock market and investing (although its not my major *sighs*). I just opened a free checking account 2 days ago and put in $250–I dont really have anything off the top of my mind I need….so….

Since my money really isnt doing anything in my checking account I figured if I could maybe start out by buying a few stocks to see where it goes… where should I start?…..

I heard mutual funds are good b/c they basically do the investing for you…which is good b/c I dont have that much time, and I dont know that much about investing anyways.

On a side note…Im probably only going to start out buying a few stocks (no more than $25)……is it even worth it?….can I even find a mutual fund or something where I can start out investing tiny amounts of money like this??

financi4 answers:

Mutual funds have a minimum investment requirement, usually in the thousands of dollars. As for trading stocks, your stock trading fees will eat you up if you only have $250 to play with.

William asks…

How do you decide which stocks to invest in?

I’m relatively new to stocks, bonds, and other investments, but would like to find out more about them. For a beginner, what suggestions do you have on educating a person on and actually making investments.

financi4 answers:

Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.

Here is some reading material that can get you started in the right direction, The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki

Then try some of these
What Works on Wall Street by James O’Shaunessey
Beating the Street by Peter Lynch
One Up on Wall Street by Peter Lynch
The Warren Buffett Way by Robert Hagstrom
How to Make Money in Stocks” and 24 Essential Lessons for Investment Success both by William O’Neil

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. ( )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why. This site has some basic information for beginners. If any site offers free information, take it.

Other website that can provide instructions and help with procedures and terminology are
Investopedia – Stock Charts –

Visit some of the more professional websites like Zacks –
Smart Money – Schaeffer’s –
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

Good luck, study hard and you will do well as an investor

Michael asks…

First time invester,where should I go to invest: online or with a professional?

I want to invest like 2000(stocks,bonds or mutual funds), and then like 300 a month after that. Should I use an online invester(like etrade) or go see a professional? Why?
And what is a good book for beginners?

financi4 answers:

I highly recommend Edward Jones if you want an investment advisor to guide you. They gave me a great introduction to the stock market, and they can help keep you on track for retirement.

If you want to devote plenty of time to studying, and make your own decisions, then E-Trade and Scottrade are great discount brokers, and there are a lot good books in the Investing section at your local bookstore.

$300/month is a good investment, but with a discount broker you’ll probably be limited to certain mutual funds, so that you don’t waste a lot of money in commissions. With Edward Jones there are probably more ways that they can work with your monthly deposit.

Richard asks…

What is Better: Bonds or Stocks?

What would be better for investing $1000? Would it be better to put it in a bond or stocks, such as mutual funds or ETFs?

I’m a beginner investor and am wondering what would be the best way? I’m willing to let the money sit for a while. (I.E. 15 years give or take 10.)

Thank you for your time.


financi4 answers:

Bonds give a ‘guaranteed’ return
some blue chips also provide the same sort of ‘guaranteed’ return thru consistent dividends. Right now might be a very good time to select some blue chip stock to invest in, since you will get the benefit of bond-like returns (income thru dividends), plus you get the value investing angle with the potential upside of growth since the market is depressed by the hedge fund and finance crisis, making the bond returns particularly attractive right now [what used to be a 2% dividend return, for example, is now at a 7 or 8% rerturn].

Joseph asks…

how can a 19 year old learn about investing his money?

i want to learn how to invest.i want to learn about stocks, bonds, and the stock market.
are there any books you can recommend for someone who is an absolute beginner, or perhaps a class i can take?
oh and i am Canadian so please no American investment tips

financi4 answers:

“A random walk down Wall Street” is a great first book and reccommended to everyone who hasn’t read it. Forget the economics class which will likely teach you…wait for it…economics, not finance.

James asks…

What’s the best way to invest a large amount of money?

I know there are IRA’s, bonds, stocks, etc. But which would be the best for a beginner investor (myself), whom wishes to save it, and not touch it for at least a year or so?

financi4 answers:

If your time horizon is only a year the best thing is a CD.

Powered by Yahoo! Answers

read more