Where To Make Money Now In The Market

Sorry for the gap since my last post to this Blog.  But things have been tight in the market and there has not been much to share.  So today I am going to address "Where To Make Money Now In the Market".

To answer that you must look at your portfolio and determine what kind of investor you.  Are you a conservative, moderate or aggressive investor.  Are you a beginner, intermediate or savvy investor.  I will try and address all this today in my Blog posting.

If you a novice investor and more geared toward conservative mutual fund holding, you portfolio your financial advisor most likely has you in a conservative managed fund product, or you have mutual funds that are mixed with bonds and stocks or you have about as much or more invested in bond funds as you do stock mutual funds.  For the basic or new investor in the market I suggest you continue on this path this year.  Mutual Funds or good Managed Accounts consisting as I just described are going to be where you need to stay.  For no various type investor are we going to see the big gains and percentage increasing our portfolio's as we did last year.

The intermediate and moderate investor should follow the same outline I have give as the conservative or more novice type investor.  A moderate investor takes on a little more risk than the conservative investor in their portfolio.  Those people approaching retirement or who are already retired should focus all their money invested or the over whelming amount into a conservative or slightly moderate category.  Those who are retired need to depend on their investment for income during their retirement year, not so much on growth.  Some growth is good, too much is certainly not to the retiree's advantage.  Stick with the mutual funds.

For the younger or savvy investor that is more aggressive in their portfolio I recommend a good aggressive Managed Account or mutual funds with the over whelming being large and small cap stock funds.  Also throw a little into a good Emerging Market and International Mutual Fund.  A savvy investor is also going to be that person that like some individual stocks in their portfolio.  You can be a young, savvy and aggressive investor or an older or even retired savvy investor.  But I maintain or a small amount compared to the rest of my portfolio in individual stocks due to their added risk.  I stay away from food stocks usually and penny stocks.  You want individual stocks that are going to pay good dividends.  Dividend stocks have a history since time to out produce stocks that do not pay dividends.  Go with the odds and keep them in your favor as much as you can.

Mutual Funds this year overall are going to be better than individual.  Of course their are always excepts.  I play the individual stocks with my small holding, mainly in GOOD stock splits using my own solid formula.  I am NOT a day trader.  But I do keep individual stocks on the short term and take my 15 to 25 percent profit and sell it off and start looking for a new stock or stock that is going to make me money with a fairly fast and short term of having to hold it.  But I never cash out for anything less than a 10% profit as it is usually not worth it selling at that percentage.  Over the past year I have taken off (cashed in) for over 30% profit in my individual stock holding and never taking out money that would put me below my initial investment in my individual stock funds.  Don't ever be afraid to take money off the table and side it into your pocket for play money, but never take off the table an amount that dips you below your initial investment for your individual stock account.  Personally, I have all my individual stocks with Scottrade and separate from my other accounts with my financial advisor and that company.  I can make much cheaper trades with Scottrade than I can with JP Morgan/Chase so why not save money for yourself instead of to someone else is the way I look at it.  Your money is your money regardless of what financial institution holds the account for you.

Hope you find some of this information useful today.

Gus S.  



Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.