Monday, November 19, 2012

Redefining Investing Basics in the Post Recession Era


How Should New Investors Look at Stock Markets Post Recession?
The thrill of making money by investing money is something that has definitely lost its luster in the past decade. Investors have been bruised badly by roller-coaster rides in the stock markets globally. Equities unlike their historic performance have been the greatest wealth destroyer since 2006. But the fact of the matter is that there isn't any compelling alternative to stock investing. No other asset class can provide you a cushion of diversification like a portfolio of good quality stocks.

Stocks Continue To Remain the Ultimate Wealth Generating Investment Option

You may increase your investments in gold, real estate and you may also look at bonds to protect your capital. But, without stocks as a core holding in your investment portfolio you will have to stay content with shabby returns over the longer term. By long term I mean staying invested for over 15 years. I know it’s hard to stay invested in a market which can give a 15-20 percent jolt to your portfolio in a matter of days, but you shouldn't forget that it’s the same market which can potentially multiply your invested capital many times if you stick to sound stock picking strategies and invest with a discipline.


You Only Need Knowledge and Confidence to Survive In the Stock Market


Once you are ready and willing to take direct investment exposure in stocks, you should first learn some basics so that you have a greater sense of what you are dealing with. You will come across popular stock picking strategies and learn about common mistakes that can be avoided by maintaining some sort of investing discipline. All this might seem unnecessary at first, but this basic knowledge builds confidence, which is the single most important thing that you would require to survive the brutality of the stock market. Market volatility can kill your optimism overnight. Most novice investors never make it back to stock markets after getting slaughtered in their first few attempts to make quick bucks.

Parting Thoughts


So, before you head into the vast world of investing, let me tell you that there is no foolproof strategy with guaranteed success. If you are hoping that the tips and strategies discussed here can insure your investing success, then you are walking on thin ice. Let’s get it straight, I don’t have the magic wand nor can I forecast the future with utmost certainty.  Don’t take me wrong, I am not trying to demoralize you. You can definitely grow your wealth by learning the art of investing in a phased manner, small steps at a time.

I can only assure that you will get to read interesting analysis and educational articles on this investing blog, most based on firsthand experiences. You can find similar information on hundreds of financial websites, blogs and books, but at ProJabber its coming straight from the heart and after careful observations.

5 comments:

  1. I don't think retail investors have any confidence left for investing in stocks. It will be interesting to see how interest rates pan out beyond 2014 and how does Europe deal with its existing woes. I still there is a lot of value in stocks especially if you look at beaten down stocks of companies with cash on books

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  2. Stocks are not a wealth creator. You will only flush your money down the drain if you keep betting on stocks. Buy gold, real estate and keep the rest under your carpet and in bank savings. Stock markets are nothing but money sucking machines. People, don't waste your hard earned money hoping to get rich.

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    1. Yeah, some people do much better the classic way

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  3. I am so dissapointed that you don't have the magic wand ;) I was hoping to make some quick money

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Don't keep interesting thoughts to yourself ;)