Your Questions About Stocks And Bonds

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Paul asks…

Why don’t economists include the value of stocks and bonds bought and sold in measuring GDP?

also, why don’t they include the value of the used furniture bought and sold?

financi4 answers:

The stocks and bonds’ prices ARE arguable and not everyone would buy stocks or own stocks there, so if there’s no desire to want them or see them as secure (since stocks change every like 2 minutes) there’s no way to generate a “correct” price and even if it’s correct other countries or people can disagree and say it’s lower/higher. It’s also not that much internationally traded if you look at the amount of goods traded by the corporations that own those stocks, the majority of stocks stay in their countries.

John asks…

Is it a bad idea for a college student to invest money in stocks and bonds?

I have a lot of debt and I don’t have a car. But I have been learning about investing for a few yrs and I would like to spend a little of my savings on it. Is that a bad idea or should I just pay off my debt or keep saving for a car? Even if I get small returns would that impact the amount of financial aid I get in a major way.

financi4 answers:

For your situation, it is a bad idea for the most part, unless you truly know what you are doing, which I do not believe you do because you are asking for advice about investing.

For your situation, know this: with regards to the stock market, you must have money to make money.

I hope this helps!

George asks…

I want to invest some money in something other then stocks and bonds. Any ideas what is good?

I already have an IRA, and some money in a CD. I was thinking about gold or silver; jewlery, or maybe coins. Something that could hold its value, maybe increase in value, and can be liquidated quickly if needed.

financi4 answers:

I would suggest Real Estate or funds (REITs)
Real Estate Investment Trusts – they are managed
real estate holdings.
Read over the REIT’s prospectus
If you invest in Real Estate (residential, commercial multi-family) make sure you know the area and job markets that influence the consumers. (renters or buyers)

David asks…

How do I get into investments/trading, stocks and bonds?

How do I get in on it on a personal level. I don’t want to work for a firm just to do it privately.

How does it work?

financi4 answers:

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.

If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first, making about $30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.

Besides you can’t do much with $100 in the market. Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.

I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.

Good luck.

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