Your Questions About Disadvantages Of Investing In Stocks

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Donald asks…

what r the advantages/disadvantages of investing in shares/stocks?

financi4 answers:

Want to learn basics of stock trading

try http://www.khelostocks.com

James asks…

What is one advantage of investing in stocks? What is a disadvantage of doing so?

financi4 answers:

Investing in stocks exposes you to huge potential gains. It also exposes you to great financial risk.

To learn good Rules for Trading and Risk Management , go to:

http://www.stock-trading-guru.com/trading-rules.html

Good luck,
Winston.
Winston@stock-trading-guru.com

Thomas asks…

What are the disadvantages of being young and investing in the stock market?

Perhaps young people are not quite as wise but that certainly can’t always be the case,is there a disadvantage to being young because you need multiple years of hands on experience to make good profit or is it because young people are incompetent?

financi4 answers:

The disadvantage for any age is investing without understanding the market or investing.

If you’re a rookie in investing or stocks, go to

www.finance.yahoo.com.

Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.

That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.

Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.

Richard asks…

can someone please help me with this problem? I do not understand stocks and investments. at all.?

Cliff Swatner is single, 33, and owns a condominium in New York City worth $250,000. Cliff is an attorney and doing well financially. His income last year exceeded $90,000, and he has sufficient liquid assets to supplement his condominium and other tangible assets. Several years ago, Cliff began investing in stocks and bonds. He made his selections on the basis of articles he read describing good investment opportunities. Some have worked well for Cliff, but others have not. Cliff has never taken the time to evaluate his portfolio performance, but he feels it isn’t very good. Cliff currently has about $90,000 invested. He has been dating a woman lately and hopes to marry her in three years, at which time he will need $20,000 for marriage expenses and a honeymoon. Cliff’s only other objective is to accumulate funds for retirement, but he does not have a specific dollar target for this goal. Cliff feels that he has a moderate risk-tolerance level.

Explain some disadvantages of Cliff’s current investment approach.
Construct a portfolio for Cliff, limiting your selections to mutual funds (assume that he sells his current stock and bond holdings). Make sure your plan indicates specific dollar amounts for each portfolio component. Make sure your plan also explains your selections for each portfolio component.
Explain how Cliff should periodically rebalance his portfolio, indicating how frequently rebalancing should be done.
SHOW ALL WORK FOR EACH ASSIGNMENT AND EXPLAIN EACH STEP CAREFULLY.

financi4 answers:

I think Sherry needs to marry Cliff since he is more capable of handling this problem than she is.

John asks…

Explain some disadvantages of Cliff’s current investment approach.?

Cliff Swatner is single, 33, and owns a condominium in New York City worth $250,000. Cliff is an attorney and doing well financially. His income last year exceeded $90,000, and he has sufficient liquid assets to supplement his condominium and other tangible assets. Several years ago, Cliff began investing in stocks and bonds. He made his selections on the basis of articles he read describing good investment opportunities. Some have worked well for Cliff, but others have not. Cliff has never taken the time to evaluate his portfolio performance, but he feels it isn’t very good. Cliff currently has about $90,000 invested. He has been dating a woman lately and hopes to marry her in three years, at which time he will need $20,000 for marriage expenses and a honeymoon. Cliff’s only other objective is to accumulate funds for retirement, but he does not have a specific dollar target for this goal. Cliff feels that he has a moderate risk-tolerance level.

financi4 answers:

Cliff must be one dumb attorney if he’s asking for financial advice here.

George asks…

Explain some disadvantages of Cliff’s current investment approach.?

Cliff Swatner is single, 33, and owns a condominium in New Yourk City worth $250,000. Cliff is an attorney and doing we financially. His income last year exceeded $90,000, and he has sufficient liquid assets to supplement his condominium and other tangible assets. Several years ago, Cliff began investing in stocks and bonds. He made his selections on the basis of article he read describing good investment oppertunities. Some have worked well for Cliff, but others have not. Cliff has never taken the time to evaluate his portfolio performance, but he feels it isn’t very good. Cliff currently has about $90,000 invested. He has been dating a woman lately and hopes to marry her in three years, at which time he will need $20,000 for marriage expenses and a honeymoon. Cleff’s only other objective is to accumulate funds for retirement, but he does not have a specific dollar target for this goal. Cleff feels that he has a moderate risk-tolerance level.

financi4 answers:

Cliff needs to have his NY condo re-evaluated by a real estate professional to tell him how much it is actually worth.

Then, Cliff needs to download the 40-year investment calculator at the URL below and enter his age, investment level, ROI, and read what it tells him.

Then Cliff needs to open a retirement account and get crackin’.

Good luck Cliff! We are all rooting for you!

David asks…

disadvantages?

What is a disadvantage of investing in collectibles? What is a disadvantage to buying stocks? What is an advantage to buying stocks?

financi4 answers:

A disadvantage to investing in collectibles is that the general interest in collectibles may easily go away. For example, Cabbage Patch Dolls, Tickle-Me Elmo, and Beanie Babies are rarely sighted for being highly prized these days. They may still be valuable, but the number of people who still prize them is far smaller. Also, collectibles are subject to potential damage from breakage or the elements, and often the needed safeguards for preserving them cuts heavily into the potential profit margin.

When it comes to stocks, it’s simply a matter of how the market works. Sometimes the price of a particular stock goes down, resulting in a loss of value. On the other hand, the price can go up, yielding a potential profit. Also, stocks sometimes offer dividends, which is a positive, but it might be less than what other investments offer.

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