What do you think about investing during financial economical crisis?
Posted by admin in Finance Tuesday, 22 November 2011 09:02 2 Comments
I know that this financial economical crisis will last for 2 years at least. But I want to get some financial benefit from banks in anyway.
So what do you think about investing during financial economical crisis period? Will it be successful or self-destructive plan?
Choose wisely and you can make a lot of money.
Hi,
Depends. If you plan on “bottom fishing” and hoping to pick up some good bargains, be prepared for a wild ride — and probably many losses.
It’s tough to invest for capital gains/price appreciation when the market has gone down so much. Volatility is at historically high levels.
Also, it’s tough to guess which companies are going to prosper in and after these tough times. Big names are on the ropes. Who’s next?
Also, don’t forget that baby boomers have just started to retire. We might depress the markets for a lot more than just two years.
So, my advice — as always — is to invest for income. You can pick up many bargains in dividend-paying stocks. You don’t have to care how their prices fluctuate in the future, so long as they keep paying you dividends.
best, Rick Stooker