Given the current volatile nature of the stock markets do you invest in stocks?
By ram_cv
@ram_cv (16513)
India
August 3, 2010 9:44pm CST
For the past two years the global stock markets have been very volatile. Do you still invest in stocks or feel that you need to go for more safer instruments like debt and bonds?
Cheers!
Ram
6 responses
@kalav56 (11464)
• India
4 Aug 10
Good mornig! Investing in stocks is a part and parcel of my life irresepctive of volatility.Whether one should go in for safer instruments depends on one's experience, capacity for holding,risk appetite and most importantly the motive for investing.
2 people like this
@ram_cv (16513)
• India
4 Aug 10
Same here. I usually do not even do investments on a long horizon. I usually pick up stocks and define a margin and usually sell as soon as I hit the margin whether or not the stock still has more steam to go. Feel more comfortable that way, though can't milk the last dollar off my investment :)
Cheers!
Ram
@visijay32 (447)
• Philippines
4 Aug 10
If I would be able to invest in the stock market today, I would definitely do it; however, I am cash strapped at the moment. Anyway, it is good to invest in the stock market if you make it a long-term investment. Take note invest not trade. Trading is where you find people who suffer heart attacks. It is actually an opportunity to buy since the prices are low just like what Warren Buffet is doing, he treats every low stock prices as a trip to a candy store. Damn, I wish I do have the money to buy now!
1 person likes this
@TeamCholent (2832)
• United States
4 Aug 10
You can always try and save a little bit of your online earnings and use that towards stock purchases in small batches and slowly building up a portfolio for yourself. I do agree that now is a great time to invest but one still needs to be careful.
2 people like this
@flydanman (111)
•
13 Apr 11
Stocks are more volatile simply because long-term, they have the potential to produce greater yields. Even within stocks you can choose from safer, more stable blue chip companies (such as Exxon, McDonalds, General Electric etc) that will suffer less volatility but produce only modest overall gains. You can increase your exposure to volatility and potentially improve your yields by investing in emerging market economics (such as an index-tracker fund for the Shanghai stock market in China).
Bonds do provide a more steady income but for lower yields. You need to weigh up the rate of inflation and whether your investments are providing you with real gains. Bonds may be more suitable for you when you are nearing retirement to reduce your exposure to volatile market shifts.
If you're young and you've got plenty of time to invest I'd certainly recommend increasing your exposure to risk and therefore increasing your liklihood of maximizing your gains.
@TeamCholent (2832)
• United States
4 Aug 10
Stocks for sure. My husband and I love to invest now days as he is an economics major and we feel there is a great opportunity to invest now. One should always invest only what they can afford to lose. Watching stocks crumble daily also reminds me that they can rise at any moment. I also do have a savings account and some bonds to make sure the investments are balanced.
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@TeamCholent (2832)
• United States
4 Aug 10
We do a few daily trades to help bring in some income but most of the purchases are long term we plan on holding for the next 5 odd years. For example we recently purchased a few shares in Amazon, nothing serious but given their current performance things will get better with time. Banks here are not giving the best returns either even though they are safe. We plan on using more savings towards purchasing a small investment property as we both feel that property is a great investment and always will be.
1 person likes this