Thursday, June 7, 2012

How the stock investor should do when crisis

Most Investor worries to their money in stock. The market index trend is decreases in three years after the sub mortgage crisis. Some investor has decided to sell all the stock and buy other asset that can give some benefit. Buying hard asset also guarantee the value of money. For example, buying car can increase our asset and we can use the car. Even though, the car price will decrease but it is not much.
It is the right investor to sell all the stock that they have; however, they do not just follow all people that sell the stock. The investor need to analyze the company whether they can generate revenue or not.
Selling the stock may decrease the profit of your stock because the demand is so low and no one want to buy the stock. Unless you believe that the company cannot operate again, you can sell all the stock. It is better to suffer small loss than suffering big loss.
Moving from stock to other assets is good but you must be sure that you move to right step.
Some investor put the money at certified deposit or bank account. The bank will guarantee our money but we cannot get satisfy return on those investment. The certified deposit interest is only two percent.
Some investor tries precious metal such as, gold, silver, palladium, and platinum. This investment is also good too. However, silver price had decreased on May 5th. This is a sign that that the demand of the metal decreases. Some investor may sell the silver for their necessity.
Despite of decreases silver, the silver is stable. It will not fall to the deep valley as the stock. The gold may be a good alternative to save your money recently. The gold bar has increased to 27 % in past twelve month. I believe no one stock that will give return as high as gold. People believe gold will never fall.
Some investor may buy the property such as land. The land keeps the value of asset but we should pay the land tax. We can rent the land to the farmer or businessman. They may use the land for farm crop or business.
I think we can put our investment in stock just 10% of our asset if we are risk avoider. The risk lover can put 40 to 50% asset to the stock.

No comments:

Post a Comment