SOme Honesty?
Question:
Is the stockmarket gambling for the private individual or is it a real option? Example: They say if you want to make money on the stock market it needs to be long term and it needs to be invested in so called blue chip companies where risk is low and so in turn is the reward. So would it not be better to contain ones money in the money market fund where a guaranteed interest exists and there is no risk involved , with the returns equaling those of the abovementioned low risk long term investments. Youre thoughts pls(Pls also bear in mind that this is with respect to private finances and not of macro-economical scenarios)
Answer:
Well, you've forgot something about blue-chip companies; their stock price is relatively high. So yes, they are reliable, but at the same the value yielded is low, not to mention that they are pricey. These are good for long-term investments.
As for investing in Gold and Platinum; you need to remember that the Middle Easterners heavily invest in these commodities, hence they are in a wobbly state.
I would suggest investing in fresh new online-start-ups, investing in a subscription of Inc. (to keep on eye on start up companies with good potential). Also, try to track where are the hot shots pouring their money. For instance, when Al Walid bin Talal started investing in AOL and Apple, the two companies came around, and started recording decent revenues. Keep on eye on where these people are investing, and follow them.
Good luck,
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