It’s the perfect time to invest in blue chip stocks

Yaa, so we all are pretty aware of the fact that market is falling in this recession period, indeed; the graph is moving downwards. Same fall with US economy…its going hand-in-hand with finance market. Therefore, there is a tie-up between this ceasing market & this flimsy economy….but, this tie-up has generated some new, fabulous scopes of investment in a specific set of stocks. Investment, at this time, in those stocks is a wise plan….guess which are they? “Blue chip stocks”!!

Really, man….start saving some of your money right away for investment in blue-chips. At present situation, the trades with Blue-chips are very likely to turn out to be damn profitable….because these stocks are carrying good potential & better possibilities. Why? Reasons are below:

1) No body is predicting, that the blue chip stocks are or will be on sale.

2) All these kinds of stocks are being ignored & undervalued by most of the buyers currently; the rates are also at their lows.
Let me give an example:--As of March 9, The trade for Apple Inc. had been running at $83 per share, where as in last may it had been traded at $189. Anothet stock, Sony is currently running the trade at $19 per share where as in last June it was sold at $51.

3) At least 193 stocks out of the 500 Blue-chip companies enlisted in the S&P have an earnings-based price to earnings ratio of 10 or lower for the past year. That means, they are maintaining such ratio constantly for 1 year now….

All S&P 500 companies do not have the status of “Blue-chip”; for example, in the year 2007 only 36 were there. So, a bit search work is required in order to find themout….but, too much endevour isnt needed at all. Just some basic stock market research over your computer…and you’ll find those companies you are planning to invest on. Just listen to the names. Check out the blue chips and pick your favorite.

Stormy Stock market: some useful ways to win over it (2)

1. Portfolio matters
An important factor is portfolios. Off late, so many portfolios have gone extremely heavy in stocks in market, thanks to the success of this market over the past few years. But this strategy is highly risky. It is a safer way to have less or, at least half of the portfolio in stocks. You can easily make up the rest part with cash. Bonds, property etc middle-ground investments are also another option to fill up the rest portion.
“Ready made balanced portfolio funds” have become damn famous off late. A lot of investment houses have launched these new types of portfolio funds. One latest fund among all these is New Star with its Tri-Star product. This fund is a shorter and easier method to make a portfolio of balanced (equilibrium) investment. With a small holding of cash this profitable fund is divided almost equally between bonds, stocks & commercial property.

2. Issues regarding equity Isas, equity bonds and CTFs
Products like Equity ISAs, equity bonds, or CTFs normally track one particular index. Sometimes, professional managers also takes care of their management.
Those products, which are tracking a specific index figure are completely dependant on market. Their performance is also highly depending on the overall performance and ups & downs of stock market. In stock market, many basic equity-based bonds track markets.
Another good option: fund of funds. These make investment in various different funds, and thus the possibility of spreading risk is more. In today’s market, you can hold them within an Isa wrapper, but there is usually a fee to switch funds.
Courtesy to the skills of the professional manager looking after your equity Isa product, the managed fund you have invested in via your Isa should weather the downturn more effectively. Suppose, you own a risky fund; for example- a high-growth fund which invests in smaller stocks. Then it would be a really considerable option to switch to a cautious managed fund.

3. Other types of investments
Always try to follow the stock buying trends and time of the fund managers, and analyse the situations in which they are buying. If you keep your eyes open, you’ll see that the managers normally do not follow the general public trend of running after only those ones which are working at present and valued only at present by buyers. Rather, they search for those stocks which carry definite prospects for future, but are not very valuable asset in market at present, so not valued by public.
You should better go for those defensive stocks, in case you prefer to invest in individual stocks. It can really be a nice and considerable option to buy those stocks whose price rates normally do not fluctuate or respond to the volatility of market. Some example of those defensive stocks are those of utility companies, pharmaceuticals, tobacco producers, food makers, etc.
Don’t get frustrated or disheartened due to this prevailing recession in market…..it does not necessarily mean a down or lethal situation for investment. Right now, many situation managers are considering downturns as fresh buying opportunities. So definitely you as a potential and willing investor can follow their ways. Some situations manager are even saying that as due to this recent downturn stocks have gone overvalued, naturally very little no. of shares are there to choose from for picking up and the fall has widened the buying opportunities.

Stormy Stock market: some useful ways to win over it (1)

Ups and downs are on in stock market as usual, and especially prices are more fluctuatuing amidst this recession which still looms over the market, which is already under pressure. Those, who are set to invest in this inconvenient market, should keep that point in mind. But, yes, you are the investor, who is taking the risk; you have to get the best fruit possible out of your investment even in this stormy market scenario. Keeping your stand here in mind, I planned to share some tips with you guys for taking care of your invested money in this present stock market.

1. No fear-fear is useless
Stock investment is a long term proceedure, lengthy way of investment. You must be mentally prepared to walk through too many price related ups and downs, and regardless of present market situation, many different and fully unforseen market outcomes you may face at times which no way match the forecasts. There may come scary and staggeringly low price rates, fraustrating conditions and greatly uncertain market phases…..and you have to be ready to take them all. Everybody does, dear. Equity stocks should outperform every other asset class in long run.

2. If can not play, sell up & forget
It is true, that at very recent past, the stock market had had a fine run. A lot of investors have done well. But, its true as well that stock game is a nerve game, and not at all situation we can hold on to it. If at any point (for example, when the rates are extremely fluctuating) you feel that your nerves are failing and you can not take the tension any more, may be you would very much like to do the trade at a more safe mode, and be at safer zone with your investment. Selling away your stocks that you hold may be a worth considering decision at that moment. I would advise: sell up what you have, take home the profit and put your money in a savings account. An expert stock analyser says its totally ok to hold cash for just a certain period of time and sell it off then to get profit in case you have no year long investment plan. And, he says that it is no way mandatory that you have to have a long-term investment planning, if you are not ready. In fact, not all the stocks in market are ideal for longer time period. Selling up some of your stocks stored and putting the profit in a high interest rate account is profitable as well, and makes sense.

I am in a bit hurry today, so that’s all for the day and would get back with other tips on my next post. It is to be continued…….