How to Start Investing: Basic Investment Ideas

We’ve covered how to start investing and the basics of how to buy stocks online. It’s for everyone else that needs to know how to win by playing the amateur’s game in investing and meeting their financial goals.

In this post, we’ll wrap basic investment ideas around two concept. 1. Diversification 2. Life stage investing  

Diversification is one of the Most Important Investment Ideas.

To understand diversification, understand that different investments react differently to the economy and other headlines. 

Strong economic growth is significant for stocks because it usually means corporate profits are heading higher. If you were investing in bonds, a booming economy might not be great because it might mean higher interest rates and lower bond prices. 

For real diversification, you need to own a few investments in each of the asset classes: Stocks 1. U.S stocks of large and small companies 2. Foreign companies

Bonds 1. Bonds of U.S. corporations 2. Personal loans Real Estate 1. Real Estate Investment Trusts (REITs) trade just like stocks

Investment Ideas around Exchange Traded Funds

A much simpler way to invest is in exchange-traded funds (ETFs) and other fund choices. An exchange-traded fund is a group of stocks held around a common theme or strategy.

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