Investing Questions and Answers

How much listing expected r,power?




Answers: around 750
Will be listed at Rs.735/760.
There is a fear in the market. Market is not settling down. People are not in the mood of taking any position. Most of the people want to sell and book whatever they get.

What's the difference between stocks and bonds and which is better?




Answers: If you need to ask this question you DEFINITELY need to spend some time reading up about them both before you invest ANY money in either of them. The decision to purchase one or the other, or both, depends entirely on your age, your income, your savings balance, and your goals in life, both now and in retirement.

There are RISKs in every kind of investment. You can lose ALL of your investment with stocks, and you can tie up your money in bonds while other investment options could have earned you more money, or you could even buy bonds that are no safer than stocks; not to mention that how you buy, hold and sell both of these will influence your taxes also.

Even having a good financial advisor is no guarantee that you will earn money with your investments, so before you do anything, start reading the basics about these, so that you will have some level of understanding before you do anything. Ask friends who have invested what they think. Be SURE to read about diversification of your investments - at least that way you don't put all your eggs, and therefore your risk, in one basket.

Good luck to you!
Think of it this way...


Stocks usually give higher returns than bonds when conditions are right in the markets.

Presently, with too much uncertainty, people are flocking to the safety of bonds.

It is unknown how bad the economy will get, so it's a safe bet to keep most of your money in U.S. bonds until matters get straightened out.

Therefore, it's wise to park your money mostly in bonds, and wait out the storm now brewing.

Most financial advisors want you to stay invested in stocks.

Their theory is passed around among the financial advisors with little regard to the dynamics at play.

When you have inflationary fears showing up, and a change in the guard at the Federal Reserve, all bets are off on stocks for the short term.

Better to get a low return than suffer steep losses.

So far, most people have taken almost a 20% loss on their stock investments, in only a three week period.

That's cause for alarm, and surely I see a stampede from stocks.

Too many follow like sheep, and fail to do their homework.

How should I rebalance my 401k within this bazaar?

I want to re-balance my 401k to minimize risk and maximize return in today's disgusting reduction.

Anybody have suggestions on the best channel to rebalance it?

i.e. 20% stocks, 40 % bonds, 20% foreign currency etc.

I apreciate the help

Thanks!


Answers: Normally a pious mix is
60% stocks (foreign and domestic)
30% bonds
10% money market

beside current market hitting a low for the subsequent year or so, it may be wise to rebalance to

40% stocks
50% bonds
10% money marketplace

40% stocks should be divided in growth, income, international, small cap
This is an answer assuming that the 20/40/20 mix was something that be well thought out for your long residence financial objectives and your age... you should rebalance the account to only just your original asset allocation. Just because the souk moves does not change the long possession potential of the asset returns. Therefore the stock market is "on public sale," and you should buy while it is at a bargain.

However, you could use very soon as a time to meet next to a financial advisor to evaluate your long term goal, to make sure that your asset mix reflect your risk tolerance and retirement spending expectations.

(foreign currency in a 401 k?! - holy cow, I'm surprised the custodian allows that!)

The entirety of this site is protected by copyright © 2008. All rights reserved. RunEye.com