msekree wrote:The nominal value of a share is almost meaningless. Dividend yields always relate to market value.
I guess that is why invest in stocks myself, rather than having anyone else managing my money! I like the idea of locking in profits on the way up.
Personally my best advice is for individuals to do their home work and learn how to invest directly in the market, something i neglected to do for most of my life, but when i finally did start, I never looked back, of course there is a learning curve, so only invest what you can afford to lose. Decide which is high risk and low risk industries.
First of all do a risk assesment on oneself, if you find you are within the well balanced range, go for it, if you have risk aversion like my Mrs, then maybe (msekree) is a better choice.
But basically why pay extra costs and get lower returns? If I'm going to lose money, or make money, then i would rather have the fun doing it.
Stock market is not that difficult for people that can manage money. So its better to lock in profits after the first 10 to 14% rise rather than be greedy and guess the peak, especially in high tech stocks. The problem with the stock market is that foreign investors and institutions deal in millions of shares, when they come in the market, they push the price up, when they pull out, the price drops.
If you can get used to monitoring the big boys, you can lock in and get out. even if you miss the drop, you haven't lost until you sell, and most of the markets are cyclic, so they are up and down all the time.
I was actually reading an artical on the net how fund managers, follow eachother most of the time, many of them cannot beat the market, but providing they stick with the flow, they keep there jobs. If for some reason a fund manager is down on his portfolio, when most are up, he would be replaced fired!!
The guy on the street can do just as well! Keep the money working guys, good luck