Cat stock at record high...

Thanks Pete for all that you do in the club.

That’s a great info. Thanks Pete for all of this information. Even I am having a thought on personal financial planning but it is just so hard for me to get started with things like stock market investment and trading. Is there anyone who can share some tips for me? Any tutorials for beginners?

Hi, Bittle3

I worked for 5 years as a trustee of a large ($3bn) occupational pension scheme.

Generally speaking shares in companies (equities) are one of the most volatile (can go down in value as well as up) investments. Bonds, especially government bonds, e.g. US treasury bonds or notes are a safer investment.

The return (reward) you get from your investment is usually inversely proportional to the risk you take. So, a low risk investment such as keeping your money in the bank or savings account will not give as good a return as higher risk shares over a long period of time. The "long period of time is the key phrase here. In the short term they can lose money (something that will not happen in your bank or savings account).

If you do invest in the stock market (shares), it is best to invest in as many different companies as you can to spread the risk across them. Another way of doing this for smaller investors is to invest in funds, especially index tracker funds. So you can invest for example in an NYSE index tracker fund, that means your investment will grow (or shrink / fall) in line with the NYSE index. You are effectively buying a bit of each of the companies listed in that index.

It is impossible to give a full account of the different types of investment in a short note, but the key questions to ask are "What risk am I taking" and "What reward am I receiving".

Personally I would never invest all my money in one company or share as it's a bit like "Betting the farm" on that one company as one of my American colleagues used to say. A wide spread of investments minimises the risk. This is especially the case where you are dealing with money that does not belong to you. In the case of a pension fund, the money belongs to all the members of the pension scheme.

most if not all stocks have dropped since the mid term election where Democrats won....thanks democrats

They're not in session yet.......

They don't have to be in session. The market knows whats going to happen and is pricing them in session.

I'm going to also say that the gentleman from India who posted is a spammer.

[quote="d9gdon"]They don't have to be in session. The market knows whats going to happen and is pricing them in session.

I'm going to also say that the gentleman from India who posted is a spammer.[/quote]

Thought the same thing myself. The big cats in India are known as Tigers and we don't collect old Tigers!

JanM

Record high stocks??? Ha! probably because of there rip off restocking charge for parts at 25%!!!!!!!!!!!!!!!!! Bastards! return a $450 part and they charge you $111 to put it back on the shelf!!!!!!!!!