|
 |
|
Finding Stocks that Fit Your Investment Style
by
Susan Posey |
It seems everyday we hear more about
the unprecedented growth in the stock market. This growth is drawing the attention of
the media and individuals, sparking an increased interest in getting a "piece of
the action". Whether you're a seasoned investor interested in the internet stocks
that have everybody talking or an investment novice who would simply like to know what
it's all about, finding stocks that fit your investment style is the key to a successful
portfolio.
The Big Picture
In a "bull market" like the one the U.S. has enjoyed since the mid-eighties, it
is sometimes easy for investors to forget that growth in the stock market depends on the
overall condition of the economy. It is important to remember that great stocks can
perform well in any environment, but that without an understanding of the overall economy,
you may start traveling the investment road without a map. Getting a handle on the
economy is sometimes as easy as reading financial papers that keep you informed about
economic growth, interest rates, and inflation, both in the United States and abroad.
In addition, recent changes in society have influenced the stock market. Technological
advances, the changing face of the workforce, and even our aging population has affected
specific industries. Staying on top of the social and political environment and labor
relations will help provide any investor an increased familiarity with the daily events
and decisions that affect a long-term economy.
Really Dig In
Getting your fill of pertinent information doesn't necessarily mean burying yourself in
the daily paper. Try to dig in when you're researching a company that interests
you. Remember that articles written by other people do not always tell the entire
story, so you should cautiously interpret their content. Become acutely aware of the
role of information in our lives -- it is everywhere and in almost every form
imaginable. Consider the internet, reputable magazines, financial statements, even
public meetings as sources for information. Investing wisely requires
research. Fortunately, today's investor can benefit from the "Information
Age".
The Next Step
All this preparation may seem like a tremendous amount of work. That's because it is.
Researching the vehicles that will make your money work for you is a tremendous
responsibility. Along the way you may want to consider seeking the advice of a
professional. Most financial consultants are willing to meet with investors to
discuss goals and planning. Asking for help is sometimes a wise choice, especially if your
specialty is not finances. For many investors, gambling with your finances is like
gambling with your future.
If You Seek Guidance
If you do choose to enlist the assistance of a financial consultant, do a little research
in this area, too. Consider asking your family, friends, and coworkers who they trust
in this field. Just as you would not visit a dentist without a good referral, ask
around to see whom others recommend. Then make time to meet with professional financial
advisors in your community and communicate your goals to them. Listen to what they
tell you. While your goal should always be your financial consultant's goal, you should
also be confortable with how your money is working. If their idea of a good
investment is a little too adventurous for your tastes, this might not be a good
choice. The most important thing to remember is that any financial consultant should
always keep your best interests in mind.
Susan Posey is an Investment Consultant
with IJL Wachovia in Columbus, Georgia. IJL Wachovia, a division of Wachovia
Securities, Inc., is one of the nation's largest regional full service brokerage firms,
offering a full range of investment services to investors. |
