sean00xj

I am putting about 500 in the market every month then I watch it go down. I am 25 and figure I don't need the money soon and its smart to buy in a down market. I am buying large caps, ie:GE and international ETF's. Trying to make money on the weak dollar. Should I continue with this plan as painful as it is?

Slice

My best advice is to not take financial advice from pilots!

__________________
Will fly for...$

rickair7777

In general terms, time is on your side. Buying low is good, but unless you have a high risk tolerance maybe avoid stock categories which have a lot of potential unkowns or variables...they might take a long time to come back up, if ever. Examples: certain overseas stuff, certain tech stocks.

I don't have the time to do the research on individual stocks, so I just use mutual funds which have an operating philosophy in line with my investment preferences. This also dampens out the unexpected Enron-like situations.

beis77

I'm just wondering with oil on the rise if anyone is investing in XOM? Seems like almost a sure thing in the long run. I think everyone agrees, the price of oil is only going up!

I'm not a big stock guy; just curious what people on here are doing, with the oil speculation and all.

Spooled

If you're buying ETFs and Stock you should wait until have you a large sum saved, then invest it. Depending on your brokers you're paying $10+ a trade.

That means you have to earn 2%, just to break even.

If you're going to invest small amounts of money (dollar cost averaging, the best way to do it in my opinion), I would suggest a low cost mutual fund. Most mutual funds have no transaction fees. Check with your broker, I bet they have an index fund that has an expense ratio of less than .5%.

As Rick said above. You shouldn't own stocks unless you spend a lot of time researching everyday.

beechbum

I'm confused...your first sentence says save up money to buy stock (I take this as don't invest a little each month). The third paragraph states that you recommend dollar cost averaging, which is investing a little each month. Which one are you recommended; you seem to contradict yourself.

I like dollar cost averaging. As long as there is movement in the investment you will pay a lower price than the average price of the investment.

Spooled

Read it again.
I said Dollar cost average if you invest in MUTUAL FUNDS.
Save a large some of money, then buy, if you buy STOCKS.