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Buying Stocks Today
November 24, 2008 - Ben Feldman
Today is, without a doubt, a challenging investment environment. What that means to you is, quite simply, value. The PE ratios have fallen, there is much fear in the market and perfect hunting for value if you have the foresight and patience and fortitude. Study all the financial data on the company or mutual fund you are considering. Use your broker's knowledge and data. Go to the library and research the business information in their resources. As Warren Buffet says, "be fearful when others are greedy and greedy when others are fearful." The market will rise again. Investors will return. Get yourself in position. The caveat, consider your age. If you are still young and working, go for growth. If you are near retirement, in retirement, thinking of retiring, then go slow and conservative. Remember the market doesn't always go up. It also goes down and you don't need to ride that escalator down. If you are considering a variable annuity, consider the expenses. This kind of an annuity has expenses that are ongoing whether you make money are not. It is not a guarantee of principal product. Study the funds and the objectives. Make sure thy are consistent with your goals. If you are not a risk taker and you want safety then look at a fixed indexed annuity. It has a guarantee of principal, it is safe, and no expenses. Another type of fund is the c share mutual fund. The commission is 1% but you pay that fee as long as you have the fund. Over time you wiil pay dearly. One brokerage firm I worked for wouldn't sell them. So if the largest distributor of mutual funds wouldn't sell them, because they are not good for the customer, then buyer beware and forewarned. Good hunting.
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