401K quiz - should I buy shares presently?
My friend says I should keep hold of contributing in my 401K immediately eventhough the share market have plummeted - that is because the price per share is lower very soon, and it is a good time to buy. Is that true? How so?Answers: If you are investing for the long possession such as for retirement and you have more than 5 years until you will be using it after you should stop focusing on what the market is doing today or waiting for tomorrow. The marketplace may continue to progress down or they may cut interest rates and they will jump, we could invade Iran or Iran could receive rid of their current leader - not a soul knows. In standard the markets hold gone up over the longer term. no guarantee. You should enjoy well diversified investments some stocks some bonds and verbs to contribute and hopefully get you employer's meeting.
it really depends on what share he is talking nearly, some are good right immediately, and will be good for the subsequent 6 months, example- mining companies and pharmacutical companies, some are really bad and you don't want to be buying more, approaching anything that has to do next to financials or banks. You should try a service approaching www.thewallstreethunter.com they have a really apposite track record for picking stocks and they submit insightful info about the souk every day.
Good luck...
You should other buy more stock when the market tumbles -- buy low and put up for sale high is how you get money.
If you are contributing money into your 401k on a regular basis (by auto deduction from your paycheck), then you are doing something call "dollar cost averaging". Since you are contributing the same amount every month, consequently you are automatically buying more shares when the price per share is low, and you are automatically buying less when the price per share is glorious -- which is what you should be doing.
Statically speaking, you cannot time the market, so you should put most or adjectives of you retirement money into stocks and leave it alone until after you retire.
I would recommend that you read the book "The Lies About Money" by Ric Edelman. it explains adjectives of this and more.
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Try this:
Yes, the best way to contribute to a retirement explanation is with monthly regular investment. When the market are down, you are in a sense buying it "on mart." Remember that 401(k)s are a long-term investment - don't chase market ups and downs.
International bank?
I was considering converting a ample sum of money into the Euro and investing it in a giant yield disc in Europe. I here that annual yield from CDs in Europe are superior than the they are here. Also I figure that the Euro have consistantly outperfomed the dollar so that it should be a safe conversion rate getting my money out. Has anyone hear this to be true?? Are there any pitfalls that I could slump into?Answers: CD's are American products...you will find products available in Europe are similar but not exactly like peas in a pod. Depending on the amount you have available you should know how to secure a 5 to 10% pa rate. I wouldn't bet on the Euro continuing to do better than the Dollar though. The US Dollar is very soon one of the lowest valued currencies in the world and the Euro is one of the unmatched. Most commentators are pegging the Euro to sink this year. Sterling is an over valued currency as resourcefully.
So you can do it, but it's not a sure fire way to gross money. The biggest problem you are likely to obverse is providing sufficient identification when you unfold your account next to whatever European sandbank you chose.
How do you calculate if a stock is a small-cap stock?
Answers: Small cap stocks have under $2 billion in market capitalization.
http://www.investopedia.com/terms/s/smal...