Sunday, December 9, 2007

Making big gains while doing nothing!

Stocks and other investments are somewhat Volatile ,they seem to fluctuate a lot and their patterns can not be predicted. The truth of the matter is so many people seem to track the performance of their investments on a constant daily basis. Tracking investment is not something wrong (because I myself track stocks on Forbes and yahoo), I am just saying that you should not let short term performance affect what you do with your investments.Example of this would be investing in oil one day and the price of it falls the next day.I believe you should stay with the investment until you reach a certain financial goal, mainly a certain time period such as ten years or more.I also believe that money should be placed in some sort of fund such as an Etf. Etf's operate like indexed funds but are put together like mutual funds. And after you pick your investment structure you should leave it alone.Because traditional even though a recession may hit the market ,the market has a trend of going up relative to the increase in the American population ,so do the money we have to put in the economy.

I highly recommend research the investment structure you are going to use, meaning know the fees and everything that is associated with it. Seek a financial advisor with experience and make sure he recommends investments he has in his portfolio.Famous Investors such as Warren Buffet and Peter Lynch do their investments their selves mainly because they have a passion for investing, so seek people with this burning passion too. Then let your invested income sit not getting emotional involved with it . Surely if your investment remains untouched and only has more and more money adding to it will grow by interest over time.Most likely if you owns an average performing Etf (typically yielding 10% annually),it will have doubled by interest before the end of the eighth year.So,all in all big gains are earned over long periods of time of just doing the mundane which is nothing.


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