QUOTE(dreamer101 @ Jul 16 2007, 06:54 PM)
If you buy good solid stock and the lot size is only 100, you can start with little money.
ejleemy,
You do not understand the basic of asset allocation model. We are using an A/C in USA. We are investing on asset, stock, bond all over the world. It is NOT in USA ONLY.
Do you understand that in most cases, you can use asset classes to manage your risk? For example, in recession when the USA stock market clashes, the bond market is doing very well. By having investment in both, you diversified and cancel out each other. Due to re-balancing, you always buy low and sell high.
For example, to protect against US currency devaluation, I invest on international stock index and international REAL ESTATE. So, I diversified and manage the risk. You can do this as an individual investor in USA easily. I am my own fund manager. I can hedge my risk. This is call the science of investing.
Dreamer,ejleemy,
You do not understand the basic of asset allocation model. We are using an A/C in USA. We are investing on asset, stock, bond all over the world. It is NOT in USA ONLY.
Do you understand that in most cases, you can use asset classes to manage your risk? For example, in recession when the USA stock market clashes, the bond market is doing very well. By having investment in both, you diversified and cancel out each other. Due to re-balancing, you always buy low and sell high.
For example, to protect against US currency devaluation, I invest on international stock index and international REAL ESTATE. So, I diversified and manage the risk. You can do this as an individual investor in USA easily. I am my own fund manager. I can hedge my risk. This is call the science of investing.
Actually I don't quite understand something here. Many said that if the stock market crashed, switch to bond. When the market really crashes, can we really switch in time to bond? This bond thingy, is it limitless? I mean can it be fully bought? If we all rush to buy bond when the stock market crashes, can there be enough bond for all of us to buy?
Cheers,
max
Jul 16 2007, 07:56 PM
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