An Option for Those Uncomfortable With Stock Picking
According to a recent survey by AXA Equitable Life Insurance Company, preliminary findings indicate fewer than two in 10 Americans are confident of their ability to invest in the stock market, although 60 percent still believe equities are important in a portfolio.
With such a huge gap between those feeling comfortable investing in stocks themselves and those that feel stocks are an important component of their portfolio, comes the opportunity for one to turn to stock index funds and exchange traded funds. With index funds you are still a player in the stock market, but the risks are less as you own a basket of stocks, not one individual company, and purchasing them through your discount broker is cost effective and quite easy. Stock picking and market timing, though claimed to be figured out by many on Wall Street, is hardly ever done time and time again with great success. The fundamentals of investing 101 might help you make a solid educated guess on what companies to invest in but let’s face it, investing in individual stocks, for beginners and experienced investors alike can still be a risky venture. So, for those currently not comfortable investing in stocks on their own, check out index funds. While you are at it, check out some of the on-line portfolio management tools out on the market to help you manage your overall portfolio.
Comments
Leave a Reply