Profitable Investing Tips
Define Investment Risk
Risk and reward go hand in hand when you are investing. You need to be able to define investment risk for every investment that you engage in. In any investment, the risk is the chance that your investment gains will be different from the outcome you expect.
Safe Investments if the Pandemic Gets Worse
The coronavirus pandemic continues and may even get worse when the fall flu season arrives. What are some safe investments if the pandemic gets worse? Investors have piled into tech stocks like the FAANG as these investments seem reasonably secure. But, these stocks are also high-priced and not immune to a correction if sales fall off. And, sales could fall off as more and more people continue being out of work and without any discretionary spending. There are some companies that have done well during the pandemic and which stand to prosper if things get worse.
Investment Options 2020
The stock market is back to record highs while the economy is in trouble. What are your investment options in 2020? Folks are investing in stocks because they don’t anything else to invest in. Is that really the case and, especially, are stocks really a safe bet right now? Nobody has a crystal ball to predict exactly where the future will take us but we would nevertheless like to offer our thoughts about profitable and safe investment options for 2020 and beyond.
Will the Market Crash Again in 2020?
The stock market started the year strong and then come the coronavirus pandemic and the market crashed. The stock market as a whole has largely recovered from the covid-19 crash. But, with a weak economy and no substantial stimulus, will the market crash again in 2020? If you look at how things played out in the wake of the 1929 market crash you see that the market crashed, partially recovered, fell again, and partially recovered and continued in a downward course until 1932.
Pros and Cons of Dollar Cost Averaging
Many investment advisors suggest that the average investor should use a technique called dollar cost averaging when investing. This approach lets you buy fewer stocks when the price is high and accumulate more when the price is low. It is a disciplined approach that avoids trying to time the market. By setting an amount that you want to invest every payday, month, or quarter, you set up an investing plan that is reliable and likely to succeed in accumulating wealth over the years. This having been said, what are the pros and cons of dollar cost averaging?
Weaker Dollar and Your Investments
The US economy is going to need more stimulus money to recover and that will drive the dollar down. How about a weaker dollar and your investments? A weaker dollar is often good news for US exports but how does that work out in a world where every economy is weak and nobody has the money to buy anything? Let’s look at how a weaker dollar might affect the various sectors of the stock market.
Stock Market Response to Election Uncertainty
The presidential election promises to be close again this year. What will be the stock market response to election uncertainty? Traditional thinking is that Republicans are pro-business and that Democrats are not. Thus, you might think that the stock market would fear a Biden presidency, welcome four more years of Trump, and move accordingly as polls indicate. But, our sister site, Profitable Trading Tips noted, in an article about how the market will respond to a Biden presidency, that the market is more likely to go after a Democratic victory than a Republican one. But, what happens when the election is going to be close?
Companies Under Nasdaq
If you want to find stocks in the tech sector and especially growing companies, look for companies under Nasdaq. Nasdaq ranks just behind the New York Stock Exchange in daily value of shares traded. It was founded in 1971 was the first electronic stock market in the world. Nevertheless, it functioned as a quote system initially. Because it lowered the bid to ask price difference for trades, it was popular with traders but not with brokers. Today Nasdaq is where you can trade the world’s largest tech companies