VIDEO ON MSN MONEY
Yet another completely useless article from MSN Money.
Investing does not have to be complicated. Start slow and learn as you go. Do not punish yourself for mistakes, learn from them.
Start by opening a Roth IRA at your bank or credit union. Next if you have access to a 401k or 403b at your work start contributing money to it. Pick you mutual funds by researching each mutual fund on Morningstar.com (yes I realize Morningstar is not perfect but it is a good starting point). Ignore the Morningstar Star Rating system. Look instead at the actual performance numbers. You want mutual funds that are performing in the top 35% of the asset class. You 401k / 403b will not have all great investment options but it should have a few winners. Then use you IRA to buy mutual funds in the other asset classed not covered my your 401k / 403b.
Remember your are investing for direction not perfection.
But if you're new to investing in stocks themselves, note that short articles are not enough to give you a real long term edge. There are other things not mentioned here like cash flow compared to earnings - which can tip you off if the company's earnings are being boosted by accounting tricks. Or ROE (Return On Equity) whose higher or lower trends over time can tell you if the company is capable of putting increased earnings to good use. Then there's the question of whether the company is a Rule Maker (a big solid Gorilla in its sector) or a Rule Breaker (an upstart that's doing something the other companies can't easily copy). And is there a competitor that's grabbing a lot of market share?
The best thing to do is read at least one easy-to-understand stock market classic. My recommendation is Mary Buffett's "Buffettology." I skim over chapter 16's nine questions that determine if a company is truly great before every stock buy. A really easy book that gives you a decent start in understanding how to judge stocks is Peter Lynch's classic "One Up On Wall Street."
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[BRIEFING.COM] S&P futures vs fair value: +5.50. Nasdaq futures vs fair value: +13.70. U.S. equity futures hover near their pre-market highs with the S&P 500 futures trading six points above fair value.
Reviewing overnight developments:
- Asian markets ended on a mixed note. China's Shanghai Composite -0.3%, Hong Kong's Hang Seng +0.1%, and Japan's Nikkei +0.4%.
- Economic data was limited:
- Japan's industrial production increased 1.0% ... More
- Economic data was limited:
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