The favorite investment of beginner investors is the stock market because it is very easy to buy stock shares nowadays through online stock brokerage.
What is your favorite investment vehicle? IS it stock market, mutual funds, treasury bonds, real estate, CDs, business enterprises or real estate? Have you ever noticed that nowadays the most favorite investment of newbie investor is the stock market?
Yes, it is the stock market. It is because nowadays, you can easily buy stocks as long as you know how to press your computer keyboard and use your computer mouse.
Because of the fast pacing technology, every newbie investor will choose to start investing in the stock market. Thanks to all stock brokerage companies who make investing in stocks very easy. Now, through online trading platform, you can buy stocks.
Favorite Investment, but, is Stock Market for Newbie Investor?
There are two types of investor in the world. The one who invest with knowledge and the one who invest because everybody is investing. Which one are you?
Although, investing in the stock market maybe your favorite investment, do you think and realized that stocks is the right investment for you?
Favorite Investment Vs. Right Investment
The word favorite is very different from the word “right investment”. Some investors, choose the right investment and if they found it very profitable, these investment will be their favorite one. Other newbie investors choose one type of investment and they consider it as they favorite because they believe the investment is the right vehicle for their retirement.
My favorite investment is stock market, mutual funds and setting up a business. Stock market is high risk while mutual funds can help me minimize the risk. Business ownership help me get more funds to invest. I tried real estate, too.
Choose the Right Investment Through Asset Allocation Strategy
Therefore, you should not only invest money. You should know which investment vehicle is the right one for you. There is a process called asset allocation in investing. Even if the stock market is your favorite investment, you will never know it is not the right vehicle for you until you will analyze your risk tolerance, age and financial goal. Even though your favorite investment is the stock market, you should analyze if it is the right one for you.
I hope you learned something today. Let this post remind you to do some asset allocation before you decide where to put your money especially if you are planning to save and invest for your retirement. What about you? Which one will you choose? Your favorite investment because it is easy to invest money in there or will you choose the right investment because you know you will not waste money and time.