Should I invest surrounded by Citigroup (C)?
I have be watching, researching and reading up on Citigroup for quite a while in a minute. Some say it is going to verbs dropping because they still have write downs they haven't perform in 2008. I know plentifully of these financial/banks are suffering a lot right very soon and going through management change. I personally see this as an opportunity to find in.Citigroup is the largest financial company, powerfully diversified and historically well manage. It is trading at $28.11 where this time second year it was trading around $55 per.
I am lone 23 and ready to commit my positive into an investment (long term). Two questions:
1) Should I purchase Citigroup (C) stock? is in a minute a good time or should I linger?
2) Is my money better put into a mutual fund or a CD?
*I enjoy $15K
Answers: I am elated that someone that I am competent to respond to has asked this press! I eat and sleep the financials right in a minute along with tech.merely research, research and more of it. First off, you're already on the right track looking into stocks! BEST place for your money. Did you know that over 80% of mutual funds UNDERperform the souk each year? You can craft alot more money with your possessions in the unscrew market. Now let get to Citi. I agree 100% that immediately is a wonderful time to get within. I could write a book on why but to be brief: yes, they will write off probably over 20 billion more HOWEVER, that write down is undoubtedly priced into the bazaar. Citi is a financial monster, domestically and internationally (hence the foreign capital infusions). This company will never progress under! the final year or so has be brutal but will begin to restore your health after the subprime mess is finished with. Therefore, next to a new CEO, beside write downs as old report, institutional sponsorship and currently trading at record lows...BUY BUY BUY. At 23, its going to remuneration off. hold on to this one and examine it grow.
I wouldn't recommend it but if your dead set on buying it i wouldn't put adjectives your money in at one time within case this item keeps dumping and you still own some cash. I would do dollar coast average into the stock close to every two weeks or a month put a little surrounded by and see where it's going. That road if this thing tank your not 100% invested in one stock. Also i would recommend you invest within more than one sector as this sector is sh*y.
Just remember they kept saying that almost enron too.
My suggestion is that you invest in long possession not for trading. Do not expect fast return on citibank. But do it for a long heave.
I own some C. Overall it makes up <1% of my diversified portfolio. Some sober unsexy thoughts on your $15K...
-1-- Don't dump it surrounded by... Dollar Cost Average into whatever you establish on. You put it in at $25 today and subsequent year its at $18 in the midst of the worst econonic downturn since the thirties. It could walk down and take a year to acquire BACK to $25. Invest on the way down and up. You'll do better, but it's unsexy close to I said.
-2-- Diversify... C is a good bet. My financial advisor think so and so do I. However, it's in trouble. In the 60s relatives said ITT was going to rule the world some time and was "never going to die." Ever hear of ITT? Thought not. By the way C is presently the 3rd largest financial I think. Financial sector is getting the crap overpower out of it with no standard lamp in verbs. Get a good plinth with: Consumer Staples, Health Care, Realestate, Technology, Manufacturing, Service, AND Financials. Why not a no-load index fund for a percentage and C for the rest.
--3-- Greed kill. Try to time the market and you'll obtain played. If you do time the market, steal it for what it is... luck and gambling. Nothing more. Obviously you and I aren't financial wizards or we wouldn't be on runeye.com Financial. Leave the gaming to the fools and the speculators (fools with money).
Citigroup is a fitting company, but has one impossible apple in my judgment under their umbrella. Primerica Financial Services located within duluth, georgia. check themm out before making a commitement.
I would lookk at no nouns mutual funds from T.Rowe price, Vanguard, Neuberger Berman, alliance capital, fidelity, and franklin templeton. This bearing u diversify your money instead of parking it into one company.
and i am dead serious in the order of you checking out primerica which falls underneath citi ... primerica is a pyramid skeme.
1. Instead of buying C ... if you think financials are due to turn around...
Buy the XLF the Financial ETF - consequently you won't get burned if C drops while the rest of financials restore your health.
Get more info here and check out the links on the right.
http://www.sectorspdr.com/eqsnaps/?do=sn...
http://www.sectorspdr.com/shared/pdf/fac...
You can also write front month calls against your XLF at a 5-10% better strike price and get some wearing clothes premiums while you wait on a turnaround.
2. Mutual funds are other a better bet if you're looking at more then a 5 year horizon.
I have this same question. I thought to myself "Wow Citi is fantastic company and they hold been hammer lately, not must be the time to buy." However, I don't think they are done going down. I read an article today that financial institutions are expected to write bad $20 Billion more. If you really want to invest in City I would follow what Grover said and dollar cost average, or linger six months. I just don't see any fantastic word coming that will cause its worth to rise. This is a stock that you will want to hold on to for a very long horizon.
What Small Cap stocks will do well in the near term?
Answers: Mitcham Industries (MIND)
Leases seismic equipment to drillers; earnings should rise 10-25% in 2008.
EZ (EZPW)
Its pawnshops are booming, thanks to Americans' big debt burdens.
Amerigon (ARGN)
Supplies climate-controlled car-seat components; has "no real competition."
more importantly, the small companies that can executive a well though out plan tend to have better performing stocks which is term.
How will the Fed's rate cut affect dignified give up stash accounts?
Today, Ben Bernanke announced that the Fed will cut a key interest rate. What effect, if any, will this own on high give up online savings accounts (like ING for example)? Will the accounts' interest rates lower as ably, will they rise, or will they stay the same? Will it own any effect at all?Answers: Normally you'll find bank cut their rates when the Fed does, but in todays means starved markets I have a sneaking suspicion that there will still be obedient finds out there within CD home as companies are forced to pay out sophisticated rates to bring in more funds.
ps the FOMC doesn't assemble til Jan 30 so that is when the cut would develop.
First, this isn't exactly true; there wasn't an FOMC verdict today. Bernanke just said some things which (strongly) suggested that the Fed be probably going to cut rates again.
ING cut their rates immediately -- a friend of mine checked shortly after the announcement and saw the results reflect on their webpage. ING's savings accounts are variable-rate, so this affects anyone next to money in an statement right now. Certificates of Deposit, otherwise, have a fixed rate until old age, so anyone with money already invested within a CD have locked in the rate they get beforehand.