Is There a Future in Gold?

by: admin - January 27th, 2012   Filed under: Investing in Gold Add Comment

Gold, everyone is talking about it and wondering whether or not they should enter the market. There is no doubt that gold has proven extremely popular over the last few years, and that popularity is continuing. Gold became sought after following the collapse of the financial markets in the late 2000s, as it led to security from the failing financial institutions. As all commodities grew in popularity, so did their price, and gold prices rose to unprecedented levels. With gold currently trading at around $1700 per troy ounce, is it realistic to expect success in future? Or will gold face a fall in price as people move to other investments?

A Positive Future

Some commentators believe that we haven’t seen the peak in gold prices yet, and investors should still consider gold as a viable option. With the economy faltering, and investors and governments not sure over how to deal with the various financial issues that are in the offing, gold is a strong security. If the Western countries end up in a situation where, for example, the Eurozone collapses, and economies fall into a double dip recession, then gold will retain its importance. As investors will need to continue their push into gold the price will rise and they will continue to buy gold. If this happens then gold has a strong future, and investing now should be a priority. Even though you are probably kicking yourself for not buying gold in 2007, making any profit now should not be missed. You could still potentially make large profits.

A Negative Future

Conversely some commentators are claiming that gold has seen its hey day, and a collapse is just around the corner. If the global economy recovers to a situation where investment markets are clearly making profits, then this may be the case. Although it is still unlikely that this will happen within in the next two years. When the global economy does recover, the gold prices will certainly tumble. A similar occurrence happened in the mid 1970s where gold price almost doubled, only to fall back to a price of around $400 per troy ounce, a price that stayed stable until 2006. At some point gold prices will fall, but it is directly linked to how the economy performs. The point at which you see a plateau and gold prices do not seem to be rising at all is hard to point out, and as these commentators would like you think, the gold markets could collapse tomorrow, although it is extremely unlikely.

Potential

Picking the moment to step away from gold will be extremely hard, and only the top investors will be able to set the trend. There is no doubt that gold will retain a high price for the foreseeable future as economies recover, but the future could be even brighter for gold investors if economies falter once more. For short term investors gold may seem an unreliable idea, and if gold prices continue to float around $1700 per troy ounce. If economies falter, and there are major concerns that this may happen, then gold certainly has a future, and a profitable one.

Tags: ,

A Guide to Forex

by: admin - December 19th, 2011   Filed under: Forex Trading Add Comment

In a volatile economic climate it can be difficult to find the right kind of investment vehicle to trade with, but an increasing number of individuals are opting to enter the foreign currency market, also known as forex. Forex offers a unique opportunity as it enables profits to be made even if the market is dropping, unlike a traditional stocks and shares portfolio.

Forex works by linking two different currencies and buying one while selling the other. The trade measures how one currency performs against the other. In order to make a profit it is essential for the currency you have chosen to buy to increase in value compared to the other currency in the pairing.

Forex trades can either be dealt with very quickly (an extreme version of this is known as scalping) or a position can be left open for long periods of time. In order to trade, an investor must register with a broker who will be the person to actually execute the deal. Unlike many other forms of investment, forex brokers do not charge commission for their services; they earn their money from the terms they offer.

Every broker offers two prices for each currency, namely the buying price and the selling price. The buying price is also known as the ask price while the investor`s selling price is also known as the bid price.

A broker will allow an investor to purchase a currency at the ask price, but the bid price will be set slightly lower and the two prices will maintain the same distance as the currency fluctuates. Therefore, in order for the investor to make a profit, the market will have to move sufficiently for the bid price to be higher than the original ask price.

The difference between the ask and bid prices is known as the spread and is how the broker generates a profit. Brokers will offer different spreads, with some offering better rates on particular currencies than others while others will offer preferential spreads to those investing larger sums.

The vast majority of brokers offer many different currency pairs, but the most commonly traded pairs involve the US dollar and either the euro, Canadian dollar, sterling, Swiss franc, the yen or the Australian dollar. These currency combinations are known as the majors.

It is possible to trade with currencies from emerging economies such as Brazil with many brokers, but the spreads are likely to be far larger, thereby offering a lesser chance of returning a profit. It can also be more difficult to find sufficient information to get a jump on the market. Currency combinations such as these are known as the exotics.

Once a position has been opened, the investor can specify when they want their broker to close the deal but in times of extreme market volatility, there may be some change between the price when the order is given and the actual close of trade. This difference is known as slippage.

One way to help minimize slippage, although it may not eradicate it completely, is by using stop loss orders. These are pre-set instructions that mean the deal is automatically closed once the market touches a certain price and helps to control potential losses.

Forex currency trading is a venture that can return a profit for everyone but in order to be successful it is essential to do practice runs before launching into the live market. Accept that it will be a constant education and understand that losses will occur and it will take time and patience before any real gains can be expected.

Tags: , ,

Real Estate Investment

by: admin - December 15th, 2011   Filed under: Investment Tips, Real Estate Investments Add Comment

Real estate investment can be a safer way to make money than investing in the stock market. During an economic downturn when property values and interest rates are both at record lows, real estate investment can also be a great way to take advantage of a market where you can find great bargains. Of course, real estate investment is not without risk, so you need to make sure you are prepared and understand what you are getting into.

There are a few reasons why real estate investment is largely considered to be a safer investment than other types of investments such as stocks. For one thing, real estate is a tangible asset that is unlikely to ever be worth nothing. It has actual value in terms of both the land and the materials that were used to build the property.

While stocks have value, it is possible for them to go to zero if a company goes bankrupt, if a company suffers great losses, or if the company was reporting incorrect financial information to the public. In other words, there are certain risks in stocks based both on the way the market works and on the different nature of the investments that causes them to have additional risks as compared to real estate.

In real estate, it is also possible to insure against anything that could cause a total loss. For instance, you can buy fire insurance or flood insurance or tornado insurance. You cannot buy insurance against your investment in a stock going bankrupt. Once again, this means that you can more fully protect yourself in real estate.

One of the clearest examples of evidence that real estate is less risky than stocks comes from the fact that banks allow you to borrow money to invest in it. If you went to a bank and asked the bank to give you money to buy stocks, or even to buy bonds or mutual funds, the bank is not going to give you a loan for those express purposes because the bank recognizes that there is too great a chance of loss. The bank will, however, lend you money to buy a home or an investment property because the bank knows that the asset is always going to have some value to guarantee the loan.

The fact that the bank lends you the money also gives you more leverage to make larger investments. You`ll be getting the opportunity to invest with other people`s money – the bank`s – but you get to keep all the profits when the property goes up in value. This reduces the amount of risk you are actually taking in order to earn rewards and also reduces the amount of cash you have to tie up in the investment.

If you want to invest in real estate and take advantage of these benefits, as well as of the opportunities that exist in the down market, it is important to educate yourself. You need to know what gives a property a good value and what makes it a bad one. Location plays a major role in this, so pay attention to up-and-coming areas or areas where property values appear to be on the upswing instead of stagnant or moving downward. A look at comparable sales as well as rental rates and the amount of months it would take to sell all current properties in a given market are all useful metrics used by real estate investors.

Finally, make sure you don`t get in over your head financially. Use a mortgage calculator to find out what you will owe each month and make sure you can pay it back. Don`t count on rental income or low teaser rates when making this decision either or you can get into financial trouble.

Tags:

Investment Options for Beginners

by: admin - December 6th, 2011   Filed under: Investment Tips

Investing can be scary for beginners. Committing your hard earned money to an endeavor that may never show a return is an intimidating proposition, especially if you have only a basic understanding of how the process works. Though it`s daunting, investing your money wisely is one of the best ways to prepare for the future.

It`s important to realize that investing isn`t guaranteed to make you rich anytime soon. It happens occasionally, but for most of us it`s a way to steadily build a nest egg that we can use for life`s big expenses, such as college and retirement. The best way to navigate the confusing world of investing is to develop an understanding of the best options for beginners.

Buying stock is often the first area of focus for new investors. It`s a great way to gradually build wealth through careful choices. As with any other investment, there are gains and losses but arming yourself with knowledge about the companies you will potentially invest in is a must.

Many people choose to use a brokerage firm to guide their investment decisions and this is a good idea for those learning to navigate the stock market. Keep in mind, however, that there are stiff commissions involved that decrease the amount of profit you ultimately make. Many companies allow you to purchase stocks directly from them, which is an option you may want to consider as your experience and confidence increases.

Mutual funds are another good investment option for those just getting their feet wet. They work by combining the money of many investors into one fund, which is then invested by a professional manager into various endeavors, such as stocks, bonds and CDs. This allows you to diversify your investments without spending hours researching each option. It also allows you to buy interest in companies you wouldn`t normally have access to, as they require a much larger initial investment than most beginners have access to. As with stocks, you can purchase mutual funds on your own or hire an advisor to help with the decision.

Forex, or the Foreign Exchange, is another investment opportunity that beginners may want to consider. Simply put, Forex allows one currency to be traded for another and is the most constantly changing market in the world. Individual investors most often trade Forex through the spot market, which exchanges actual currencies and is influenced by interest rates, anticipated future performance and even political environment.

Forex investors can choose to go it alone, but without in depth knowledge this option could take several years to master. Unless you have the time to spare, obtaining the services of a Forex investment broker is the best option. You can choose from full service brokers, who not only give advice, but actually buy and sell the currency on your behalf, or an online broker who provides information and tools for trading. Full service brokers charge a heftier fee, but are a good investment until you develop a solid understanding of this investment option.

Choosing the best way to invest your money is not a decision to take lightly. Learn all you can about the various opportunities before sinking your cash into any of them and always use well-known brokerage firms to avoid being scammed. Fortunately, Moneysupermarket.com offers financial advisors who can help to navigate the wealth of investment opportunities and offer suggestions based on your individual situation.

Tags:

Financing your first investment property – Is it a hard deal?

by: admin - October 21st, 2011   Filed under: Investment Properties

Are you looking for your first investment property? If answered yes, the first deal can often be a tough one as the lenders will not lend you with the proposed amount without certain qualification. Though financing your first investment property can be a daunting task, yet you can easily turn the whole experience into a favorable one if you remain careful while taking the required steps. When it comes to investing property, you should be very careful as the amount involved is a huge one. The interest rates that you have to pay on the credit options like mortgage loans are the biggest payments that you make in your life and therefore it is always better to take the steps that can lower the rates on the financing option. Here are some vital considerations to take into account.
Check your credit score: No matter how well you’ve managed your finances previously, if you have a poor credit score, the financing company will not give you a loan within your means. The credit report or rather the credit score implies your financial worth and without this you can never convince the lender about making timely payments on the loan. If you want to grab lower rates on the loan, you must go for credit repair so that they can’t refrain from offering you low rates within your budget.
Decide the amount of loan you need: By judging the value of your property and your budget, you must also decide the amount that you can borrow from the lender. When you’re investing in a property, remember that this is the biggest investment in your life. If you take any wrong decision, this will boomerang you in the future and you can even go through a forced foreclosure of your property. Thus, always assess your affordability before deciding the loan amount so that you don’t default later.
Understand the game of numbers: Apart from your credit score, your DTI ratio or the debt-to-income ratio is yet another factor that is taken into consideration by the lender in order to make sure whether or not you can make timely payments on the loan. A commercial or a personal mortgage loan will ask for a high monthly payment and if you have too many debts in accordance with your monthly income, they will become skeptical about your repayment ability.
Offer a large down payment: If you offer a large down payment on your mortgage loan, the interest rates will be much lower than what you could have thought. However, make sure that the down payment amount is also within your budget so that you don’t have to fall back on the monthly payments of your other debt obligations.
Thus, when you want to invest in a property for the first time, take all the needed steps so that you don’t make it a bad deal. Take out an amount of credit that is within your budget and repay it sooner to become debt free.

Tags:

How Can You Get Rid of the Fears of Debt by Investing in the Stock Market?

by: admin - January 27th, 2011   Filed under: Debt Consolidation Strategies

How can you get rid of the fears of debt by investing in the stock market?

If you have incurred multiple credit card debts and your personal finances are in a state of haywire, you can easily invest in the stock market and utilize the proceeds in paying off your debts. Instead of taking unsecured loan consolidation loans for repaying your debt burden, you can easily start trading with stocks as it will reap huge benefits. If you carefully invest in the stock market, it can prove to be the best debt solution and help you secure a financial future. With the present credit crunch in the US, more people are looking for alternative sources of income. If you have taken an unsecured debt consolidation loan to consolidate your debts and still thinking is debt consolidation good, “check out how stock trading can facilitate the way of paying back your debts.

What is a debt consolidation loan?

An unsecured debt consolidation loan is a single loan that is taken to consolidate all your unpaid credit card bills. As you take this new loan, all your previous loans will be consolidated into the single debt consolidation loan. Your interest rates will be revised as the current interest rates will be much lower than what you paid on your multiple credit card accounts, taken together. With lower monthly payments, it will be easier for you to manage your payments. But if you still can’t manage your credit card debts and pay off through the debt consolidation loan, check out how stock trading can help you out.

How stock trading can help you in consolidation:

Paying off your unsecured debt consolidation loan by investing in stocks can be a great idea. Stock market is a risky investment and if you have constructed your investment portfolio in the right manner and if you have grasped the intricacies of stock investment, you can yield huge returns. The income that you generate can be easily used in paying off your debts.

Stocks are known for its long term growth. If you invest money in long-term stocks and let the money appreciate, it can give you a fantastic appreciation value. With the huge income that you earn, you can deal wit your credit card debts. As you take unsecured debt consolidation loans, you will enjoy affordable interest rates and lower monthly payments. This will in turn decrease the amount of money you owe to your creditors. The lesser is the amount, the easier it will be for you to repay your debts.

However, before you step into stock trading, make sure that the stock prices will fluctuate with the economy of the country. Stay aware of the economic scenario while you invest in stocks to pay off your unsecured debt consolidation loans affordably.

Tags: , ,

How To Hire An Investment Firm To Manage Your Investments

by: admin - January 21st, 2011   Filed under: Investment Tips

Looking into hiring an investment firm to help manage your investments can br a very difficult process to go through as you need to be sure you hire the right people. You are likely to make a mistake or two along the way and yes it can end up costing you some money if you happen to make a mistake along the way.

Here are some savvy suggestions to selecting an Investment Firm.
One of the most important factors you should be looking for when looking for someone to handle your investments is integrity. You have got to be able to trust the people that handle your money as much as you trust your personal health care provider as both individuals will have your future in their hands.

You need to be completely honest from the start as to what your financial goals happen to be. In order for an investment firm to be successful in managing your money they need t know what you hope to accomplish with your investments. If you are unsure about any part of the investment process the best investment firm for you will be the one that will explain things until you understand them completely..

A good investment firm will have advisors that will want to help you learn more about what is being done with your money. You should know what is going on with your investments every step of the way. It is part of their job after all.The rates of the investment firm that you select should be willing to negotiate their rates depending on what your level of wealth happens to be.

The investment firm that you select should be 100% upfront about all of their fees as well as the commissions that they make. There is absolutely nothing wrong with your investment advisor making money as it is what they do to provide for themselves and their family. It is however without a doubt ok if you question their being a lower rate for each choice that is put in front of you. If a higher rate makes the most sense for your particular investment situation the investment firm should be able to spell out why.

The last thing that you should keep in mind when you are looking to select an investment firm is if you ever feel not so good about anything that is going on with the investment firm and what they are doing with your money them find another firm. It is up to you to be the main person looking out for you and your family’s best interest.

Article Source: http://www.articlesbase.com/investing-articles/how-to-hire-an-investment-firm-to-manage-your-investments-794125.html

About the Author

Scheirer Wealth Management is the leading Orlando Financial Planning and private wealth management company. They have the reputation as Orlando’s favorite retirement planning agency.

Tags: , , ,

Boutique Investment Firms Re-Emerge As Banks Stagnate

by: admin - January 17th, 2011   Filed under: Investment Tips

There seems to be a common misconception among many outside the financial sector: your money is safe with the bank. In reality, your money is no safer with the industry giants than it is with any number of smaller players, case and point Merrill Lynch and Lehman Brothers.

It is names like Bernard Madoff and Charles Ponzi that scare people away from boutique investment firms, but the fact is, your money may be safer in these institutions than they are when investing with a large financial institution. Boutique investment firms offer a significant competitive advantage when compared to industry giants, especially the banks.

Though definitions vary, boutique investment firms usually have less than $2 billion in assets under management. They are typically employee-owned with key investment personnel being founders or significant owners. Thus, because these investment managers tend to have significant personal assets tied up in the business, their interests are closely aligned with shareholders.

This article outlines six competitive advantages boutique investment firms have over banks and large financial institutions.

Advantage #1: Continuity and Consistency of Investments:

One large reason boutique firms offer better performance is because they tend to be owner operated, which offers greater continuity. Portfolio managers at large investment firms or banks tend to get promoted, recruited by another firm, or leave, thus leaving your investments to another manager with different ideas and strategies. This is much less likely to happen with an owner-run fund. In fact, 11 of the top 20 performing equity funds in the last 10 years are managed by their founders.

Advantage #2: Agility and Flexibility

Since boutique firms are smaller, they have the agility and flexibility to make quick decisions, that larger investment firms do not because they are encumbered by layers of management and bureaucracy. Smaller firms are able to focus entirely on investment management. They are less focused on personnel and the bureaucratic issues that come up with a larger firm.

Advantage #3: Customized Service

For many retail banks who offer private banking services, private wealth management is only one of their divisions. They often have to share IT legacy systems, company policy, and customer relations, making it difficult for them to handle bespoke requests. Boutique banks are built to serve a few important clients. The company’s IT system, culture and service model are designed to meet the needs of highly demanding clients.

Advantage #4: Relationship Based on Trust

Boutique banks tend to treasure their relationship with clients, as the account means more to them than it does the bank. Many private bankers at boutique firms aim to cultivate strong relationships with their clients, where selling becomes secondary to maintaining long-term relationship. Many private banking clients therefore make decisions together with their bankers, instead of just placing market orders through them. Private bankers usually have a deep understanding of their clients, their family history, risk tolerance and investment philosophy; these types of insights are not commonly provided by the advisors at retail banks.

Advantage #5: No Conflict of Interest

Large retail banks will often put you into their own products, like mutual funds and growth funds, not because it is in your best interest, but because the bank gets management fees from both portfolio management and fund management. With boutique investment firms, the investment choices are based on what is best for you.

Advantage #6: Lower Management Fees

Because boutique investment firms have lower overhead, less administration, and less bureaucracy than commercial banks or large investment firms, they typically can offer a competitive investment management fee. Not only do clients get a higher level of service and competency, it also costs less.

Many see the re-emergence of the boutique investment firm as part of a natural progression. As we exit this recession, the Feds are realizing that mega financial institutions are not sustainable nor are they necessarily in the best interests of society. Nimble, focused, high touch firms are the bedrock of capital formation and not ‘too big to fail’ financial institutions.

Article Source: http://www.articlesbase.com/personal-finance-articles/boutique-investment-firms-re-emerge-as-banks-stagnate-3993098.html

About the Author

Jeff Kaminker is licensed as a Portfolio Manager by both the Ontario and Alberta Securities Commissions. He holds an MBA and Engineering Degree (With Honours) and is a member of the CFA Institute and the Professional Engineers Society.

Jeff has over 15 years capital markets experience. Prior to founding Frontwater, he served as Senior Director, George Weston Limited where he led mergers and acquisitions and was responsible for running a $500 million commodity portfolio using advanced derivative strategies and risk management techniques. Jeff currently works with a number of large corporations in structuring risk management and hedging programs.

Tags: , , ,

Is foreign exchange trading the best investment out there?

by: admin - January 12th, 2011   Filed under: Foreign Exchange Trading, Investment Tips

You can bet that at least a handful of participants in the forex market would swear by it as the best investment they have ever made. The question is whether or not such a sentiment is shared by the rest of currency trading investors in the world. This article can only venture a speculation. However, we can still make an objective assessment of how foreign exchange investments and other forms of investments fare against each other.

To say that one financial instrument is the best investment over the rest is as much a risky business as investing itself. For one investor, stocks may be the best investment there is. Another investor might only stick to property investments as his ideal. For yet another investor, forex may be the holy grail of investing. This is only to illustrate that when it comes to financial investing, the most applicable maxim would be to each his own.

But from the point of view of an outsider, no single investment program can ever claim to be the best. There are several reasons for this and we will attempt to enumerate them in the following part.

All investments carry risks. Stocks, bonds, mutual funds, properties, forex – you name them and they have it. Any form of capital investment includes the risk of loss. Investing is always a gamble; you hope to gain based on what most other investors would consider sound financial parameters.

Some investment advisors would say that certain investment instruments carry more risks than others. That is however only one side of the coin. The other side points to an individual investors risk tolerance or the level of one’s acceptance for the possibility of financial loss. Therefore, while all investments do have risks, people’s risk tolerance vary such that for some low risk investments are their cup of tea but others would consider high risk programs as the best investments.

Taking forex again as an example, the foreign exchange market is highly volatile which accounts for many novice investors’ failure in it. Still, investors who can stomach such losses and are financially able to continue to play the currency trading game will at some point find success. The same analogy should hold true for other form of investments.

Flexibility of FX investments. With investments, flexibility may refer to a number of different things not all of which are related to each other. Flexibility in capital requirement is one; having flexibility in terms of liquidity is another. Forex investments are said to have both. But not only that – FX trading is also flexible insofar as trading hours is concerned due to the global scope of the FX market.

Now these things may seem to be advantages for FX investments, however there are also cons opposite these pros. Flexibility may also be perceived as inconsistency of the market to produce wanted results, which again points to the high volatility of the FX market.

In conclusion, forex is just like any other investment with its particular downsides and upsides. Claiming that it is the best investment is purely a subjective opinion and should not be the basis for making a decision to dive into FX investments.

Article Source: http://www.articlesbase.com/finance-articles/is-foreign-exchange-trading-the-best-investment-out-there-916962.html

About the Author

To help you make the best investment decisions on forex investments and other types of investments, browse our other reference guides.

Tags: , , ,

Who Should You Count On For Investment Advice?

by: admin - December 18th, 2010   Filed under: Uncategorized

If you tell people that you play the market, they’re likely to respond in one of two ways – either they want you to give them investment advice, or they think that they’re experts and they want to give you investment advice.

Today, investment advice is everywhere, but investors should beware – free investment advice is usually worth exactly what you pay for it – nothing!

Using a Stock Broker for Investment Advice

All too often, stock brokers are trained salespeople, more so than trained financial professionals. Before you act on any investment advice from a stock broker, make sure you understand how the broker is paid. Do you pay him a fee specifically to give you investment advice?

If so, does he have any other incentives to advise you to buy a certain stock or financial product? Stock brokers are legally required to disclose any conflicts of interest when giving investment advice, so make sure you ask.

Or, if you’re not paying your broker specifically for investment advice, you need to ask him if he receives a higher commission from the product he’s recommending you buy than from other, comparable products.

Using CNBC for Investment Advice

CNBC is a 24-hour business news channel, and throughout the course of day, dozens of stock market pundits appear on screen to give investment advice. To disclose all possible conflicts of interest, CNBC displays an on-screen graphic detailing if the pundit owns any of the investments he’s advising you buy, or if his family or firm do.

However, the biggest risk in using CNBC for recommendations is that much of the investment advice is distilled into minute sound bytes. This results in an incomplete picture, in which you may not fully understand the pros and cons of a given stock or other investment vehicle.

Using Magazines for Investment Advice

There are numerous magazines that dispense investment advice. The best among them are probably SmartMoney and Forbes.

SmartMoney is geared towards somewhat less sophisticated investors, however, Wall Street pros can read and enjoy the publication without it insulting their intelligence. The good news is that SmartMoney offers in-depth profiles of many stocks and other investments in each issue.

It is also faithfully honest about its best and worst picks, and it routinely reviews how its investment selections have performed over the past year.

Forbes is slightly different type of publication, with a somewhat more affluent and conservative audience. While SmartMoney is geared towards upper middle class investors with a few hundred grand in their 401k’s, Forbes is more for the executive-level investor with a few hundred grand in annual contributions to the Republican Party.

This does not mean, however, that Forbes is not a good publication. It does devote a full 1/3 of its pages to investment advice, and while its investments articles are not as in-depth as SmartMoney’s, they are well-written and concise – and sometimes that’s just as good.

Using the Internet for Investment Advice

There are numerous online sources of investment advice. Yahoo! Finance publishes articles and relays analyst opinion. TheStreet.com has many premium products that give comprehensive recommendations. But easily the most famous website for investment advice is MorningStar (morningstar.com).

MorningStar is best known for its mutual fund reviews, but it also publishes research reports on individual stocks. However, MorningStar has come under increased pressure lately as many of its picks have failed to pan out.

MorningStar assigns stocks ratings of one to five stars, and critics charge that the company will give a bad stock a good rating, and then as the share price falls, MorningStar upgrades the stock – saying it’s fallen too far and is now a great bargain.

The problem? The stock sometimes continues to fall. In the case of certain stocks like Microsoft (MSFT) and eBay (EBAY), MorningStar may soon have to create a sixth star to give them as they continue to plummet in value.

The message is – beware of all investment advice. Get your recommendations from multiple sources, always check the advisor’s track record, and be wary of any potential conflicts of interest. And the next time your brother-in-law tries to give you some investment advice, refer back to the first paragraph of this article.

Article Source: http://www.articlesbase.com/investing-articles/who-should-you-count-on-for-investment-advice-79876.html

About the Author
William Smith the author provides much more financial information on many subjects as well as the secret to his success in the market along with 5 Free power stock picks emailed daily so grab your Free subscription on his website at Investment Advice (All is Free)

Tags: , ,