Im new to investing in the stock market need help?
Question:
Answer:
"short" at least 50% of "MadMoney"Cramer's picks....
go here to get a 14% return :
http://www.etfconnect.com/select/fundpag...
watch 'mad money' on CNN - everyday at 530.
or go to www.thestreet.com
jim cramer is a smart man
Small caps! or Income Trusts
http://www.nabloid.com
high risk under 10$. . try SIRI . negative EPS, so no pesky P/ E to concern yourself with! how can you go wrong?!?!
Unlike the rest of the forum, I am not going to give you any propaganda about what my favorite picks are, but instead will opt to give you some guidelines to follow which will help you make smart decisions:
1) Dividends. You want dividends, pure and simple. Without dividends, you are a speculator, hoping that someone will come along in the future and buy your stock for more than you paid. This may or may not happen. Dividends at least give you a cash stream while you own the stock.
2) Low P/E ratio. Price/Earnings gives an indication as to how the stock is priced relative to the EPS (earnings per share). The lower the better. 15 is a good target. 20 is acceptable, but don't go much higher unless you really have a good feel for what you're dealing with. Some stocks like Google have a P/E of 55 and no dividends. Not a good pick.
3) Non dollar-denominated securities. The dollar is falling in value which is why it is costing you more to fill your gas tank, put food on your table and so many other things you've no doubt noticed. Don't listen to the propaganda on the mainstream financial shows. They don't have the foggiest idea of what inflation is and how a falling dollar will affect your investments. When the dollar falls, other currencies go up. So pick some securities in other currencies and as the dollar falls, your investments in those assets will rise accordingly and help to cover your posterior. I'll include a link to a reputable firm that specializes in this type of investing (no, I don't work there), I'm a client of theirs.
Hope this helps
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