small cap stocks in 2007
Now is the time to buy index funds?
I've been saving money to invest in index funds such as REITs, shares of Vanguard Small Cap and S & P 500. I've been thinking if it is the right time to buy these funds now. I'm new to investing and I keep listening that the market always goes up and down cycles. In reviewing the charts of index funds I have mentioned, seems to have already been a downward cycle from 2002 to 2003. From 2003 has not generally been an upward trend in the charts so far (2007). Is that you can buy index funds now expects the market will continue to play well or is there any imminent "for the cycle" of the market?
Although there are general trends up and down in any market, there is no guarantee that a particular rate will go up or down. You did not mention a couple of factors: How old are you now? How long are you willing to spend? What markets are you willing to invest? What is your risk tolerance? North American markets are moving along reasonably well and is expected to So keep doing for the short term; guess 1-3 years or so … depends on what you think. Markets Pacific Basin have been on fire, but are fed partly because many unsophisticated investors, some highly leveraged. The Latin American markets are also showing strong growth and may still have some up "umph" to them. You may want to look at other investments instead of index funds only. Resources funds are doing some of the strong earnings but keep in mind that can turn and bite hard. They represent an approach somewhat higher risk. Dividend Funds are very good. While also based equity because dividends are paid, are usually reinvested in themselves and see this as a greater number of units in its portfolio. You have the potential for growth of two sources. In a downtrend, while a fund dividends are reduced, due to greater number of units in time, recovery is usually better. If you is younger, you can take an investment position that is more heavily weighted toward values. As you get older and do not have much time to recover from landfills market, you want a more cash-based, fixed position in exchange for greater stability. And, of course, you should talk to a real investment counselor who help you sort through the minefield of funds to choose from, not all are good and some are outright scams. Personally, I would start with a division in a balanced or Index Fund, a dividend and a high interest cash account. This way your "in", have some diversification and can take some time to learn about new opportunities as they are along
AGORACOM Small Cap TV – September 10, 2007
