Did you see the movie The Big Short? Based on a true story, it told the story of what happened when several hedge fund managers, investors and one bank salesman shorted the subprime mortgage market.
Socially responsible investing is a relatively new but fast-growing investment sector on Wall Street. This involves three things that are at least as important as the profitability of a company:
- The values the company holds.
- The way in which it conducts business, and.
- The “footprint” it leaves on the world..
For many folks out there, the word “investing” conjures up an intimidating picture: traders on the floor of the stock exchange frantically buying and selling stocks by yelling and waving their arms about. But while that does happen on a daily basis on Wall Street, that’s not investing as we know and love it here at Investor Junkie. Let’s get you over your fear of investing so you can start protecting your wealth today!
Last spring, my daughter (who was then in the fifth grade) brought home what I thought was an interesting class assignment. Grouped into pairs, the kids were supposed to research publicly traded companies, pick the one that seemed like the best investment to them, and paper trade its stock. However, it quickly became clear that there were big flaws in this lesson. For starters, I asked my daughter what company she and her friend were going to pick. “Mattel,” she answered. “Wait… why?” “Well, because people buy a lot of Barbie dolls.”
As I write, the stock market is having more rise and falls than a ship in a storm. Since the January 2018 stock market high of 26,616.71, the Dow Jones has lost 10% in value. Almost $2 trillion in value has disappeared into thin air. Ouch! The decline officially puts us in correction territory.
My husband teases me because I try to plan everything. From vacations to tomorrow’s breakfast, I’m always making notes, lists and schedules. Of course I know that nothing’s a given and that sometimes things don’t go 100% according to plan. A flight may get delayed. The eggs I intended for a lovely omelet might fall on the floor and break. But still I hold that a good part of success comes with having a plan. Especially when it comes to your money.
My wife and I went on vacation to Disney World a couple of years ago. The family had a great time, and I personally was glad to get away from business. We stayed at my parents’ Orange Lake Resort timeshare, which is just outside the park.
Warren Buffett is well known for being the “Oracle of Omaha.” He is an investor with a legendary track record of making good decisions. And he’s just one of many investors who believe that index investing is the best path for achieving long-term market success. Buffett touts the overall strength of the United States economy and low fees associated with index funds. We all want to be like Buffett, but investing in funds can be a pricey proposition.
Here at Investor Junkie, we’re always reminding our readers that the sooner they start investing, the better. After all, the younger you are, the more time you have for compound interest to work its magic. So getting your kids (or grandkids, nieces and nephews, etc.) to invest is ideal for them, right? But how do you get them started on a lifetime of safe investing?
If you’ve ever watched cable financial news, you’ve certainly had to sit through commercials offering tips on day trading stocks or perhaps currencies. These flashy ads are certainly convincing. After all, who doesn’t want to earn excess profits and live a wealthy lifestyle?