Your Questions About How To Pick Stocks

Carol asks…

Agree or disagree: When interest rates fall, invest in stocks, when interest rates rise, stop investing?

Of course, you must pick good stocks that you think will make some money, that is obvious.
Is this really all the BOOM and BUST cycle is?
(capital letters meant to emphasize the types of cycles, not meant as shouting)

John answers:

You have the conventional wisdom right. But conventional wisdom is sometines wrong. DON’T FIGHT THE FED.

Linda asks…

What would be a good stock to invest in for a school project?

In my Social Studies/History class, our teacher has created a game for us to play with a virtual stock exchange. You start out with $100,000. This game uses all real stock prices from legitimate companies. Kind of like E-Trade. Only no risk :). Does anybody know what would be a good stock to invest in?

John answers:

How fun! Never had that kind of project in school. I’d pick VISA, or, POT (Potash Corp.of Sasketchewan Inc.)

Richard asks…

What is that game called where you pick items to determine who you are?

I found a picture of me as a baby playing this game where you pick up the items to determine what kind of a person you are and whats your future. I was wondering what its called. Btw i picked up the dollar bill out of like 6 other items 😛

John answers:

Not sure if it is a game, but some cultures have a tradition of laying out several items before a baby and letting him pick one to see what path their life will take. For example, by going for the money you were basically saying your life would deal with finances, whether banking or a stock broker, or such.

You might wan to ask your parents about it.

Ken asks…

How should I start investing?

I’m looking to start investing around $5k, and add to it as I go. I’m young and have a long time for these to grow (40 years), but I would like to stay reasonably diversified while keeping a high return. Is there a specific strategy I should follow? Pick 20 different stocks? A mutual fund? An index fund?

John answers:

A ROTH IRA is what you’re looking for.

It builds long term savings, tax-free earnings, withdrawals can begin at 59 1/2 pending you’ve owned in 5 taxable years, and you can allow it to continue to grow without tax penalty. You can sign up with companies such as T. Rowe Price or Vanguard and sign up for there target date IRAs, which are managed according your target retirement date. Funds start off aggressive to build long term growth, and then move towards conservative investments as your retirement date nears. Good luck.


John asks…

What should I stock my fridge with when having out of town guest?

Not sure what range of stuff I should pick up. suggestions would be great! 3 family members will be staying the weekend with us while we celebrate our grandmothers 90th birthday.
Well its my aunt, uncle, and cousin. Cousin is late 20`s, aunt and uncle late 50`s. Not big drinkers.

John answers:

I always find that cold cuts and salads work well and keep for days. Add nice rolls/bread and be done with it!

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