Saturday, June 18, 2011

Are mutual funds a good <b>investment</b> choice? | Mutual Funds

Question by Entidine: Are mutual funds a good investment choice?
I’m thinking it makes sense to buy mutual funds as opposed to stocks on those $ 8-a-trade Web sites, can keep them without worrying about quarterly earnings reports and they are controlled by experts. Make sense?

Best answer:

Answer by Strategist
Mutual funds is the first investment tools I studied on when I decide to make my money work harder instead of putting it in the savings account.

I find mutual funds is a good place to start learning about investment because your money is managed by good financial experts (if you have selected a good fund management company). You can focus on analysing macroeconomics factors only and understand how they affect the respective stock markets.

But once you are able to understand how macroeconomic factors affect stock market, then it would be good to move on to investing in stocks to make your money work harder for you.

If you merely want to invest and enjoy life then mutual funds is a good investment.

What do you think? Answer below!

Faced with the threat of deflation, the Federal Reserve (Fed) may be trying to drive the dollar lower to spur inflation. As policy makers dont want home prices to deteriorate further, an alternative is to inflate the prices of all other goods and services: as a result, the relative prices of homes would be less expensive. Weakening the dollar is an effective policy tool to drive up inflation as the cost of import goes up. Just be careful: the Fed may be getting more than it is bargaining for. Fed Chairman Bernanke believes that a weaker dollar will only drive up inflation modestly; in our humble opinion, we believe he may be mistaken. Foreigners have a limit on how much margin pressure they can absorb before they have to pass on the higher cost of doing business. No country has ever depreciated itself into prosperity and the US is unlikely to be the first.
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