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February 27th
The choice sectors at this time for investment cover a diverse area. Apparel, home/office furnishings, insurance, instruments/electronics, and to sum it up-diversified companies are good choices now.
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Look at this interesting point. With a well-diversified portfolio and your holdings in a dividend reinvestment program, which it should be, dividends would automatically buy more shares as the prices are down. But it will not last forever like this.
Look at this example with "Company A"-buying new dividend-shares as the price goes down. In 02/2007 as the price was $53.58, a unit of 113 was bought with dividends. In 5/2007 and the price was $55, 112 new units were purchased. And in 8/2007 when the price was $48, 130 new units were bought. As the price of a stock goes down, more shares are added to the portfolio with each exact-dollar purchase. Therefore, as you can see in this example, it is not always bad to have the markets go down.
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With so much confusion in this world, is it not time for you to straighten out your finances? Choose Abraham Lockhart to help in securing your future!
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Disclaimer: Abraham Lockhart receives no income from any third-party entities for recommendations. Although we may own an equity that we recommend for purchase, or continue to own an equity that we recommend a sell on, or sell an equity that we recommend a purchase of, we receive no monetary benefits for these recommendations. Our recommendations are solely for the benefit of the client.
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“Penny” stocks vs. “Regular” stocks.
I have clients who ask me every day about investing in stocks-which are priced below two dollars/one dollar. If I could compare price to price-performance, I would compare “penny” stocks to playing the lottery-any lottery! You could drive down the highway at 125 miles-per-hour, and have just as good a chance “of making it” as investing in “penny’ stocks. It is a sorry story!
“Regular-stocks,” (although all investing is considered speculative,) could be compared to driving to work every day. You will not have many problems, but every now and then, something will happen. You might have a flat-tire, or you might be stuck behind an accident! God forbid you are in an accident yourself-and way on down on the “favorable” category-you caused it!
Let us just stay away from “penny stocks!” Yes, with enough research you could perhaps invest in an extinct species. And many “penny stocks” almost are! If you want to invest in them, please contact an investment advisor!!!!
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