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What about that savings bond
Grandma got you for your 12th birthday or that spare bit of savings you were thinking of dropping into a CD? There's nothing wrong with having some assets tied up in investments that carry little risk , but if you're holding onto some cash in your savings just for the interest , you'll probably get a lot more utility out of it by investing in relatively stable stocks that will offer growth, income and some sense of "security" at the same time.
Peltier says, "Large-cap stocks that pay dividends will offer steady growth and income over the long term." The S&P 500 Index , for example, "has been posting
double-digit earnings growth over the past several years and also sports a 1.8% dividend yield ."
If you find that you do have the time to research individual stocks, Peltier suggests that you build a diversified portfolio with some of the companies in the S&P 500 (see the S&P's 500 "component" names). Otherwise, if fundamental stock homework is something that you simply don't have time for, Peltier says, "There are several mutual funds (see TheStreet.com Ratings Fund Screener, under "Fund Style") and an exchange-traded fund (the "SPDR" 500 ETF SPY."
(To learn more about ETF investing, visit TheStreet.com ETF Center.)
2. Invest in What You Know
When you're thinking about companies to invest in, it's easy to get overwhelmed by focusing on what you don't know about investing. Why not hone what you do know -- your interests, hobbies, or profession -- to your investment decisions? If you're emotionally attached to your Mac or iPod, consider whether Apple AAPL would be a good play for your portfolio. Or if you can't live without a burrito from Chipotle CMG, can their stock satiate your investing appetite?
Realistically, shopping decisions shouldn't be the sole basis for your investment portfolio, but remember that you're part of that coveted 18- to 30-year-old retail demographic. What 54-year-old investment analyst can say that?
Even if you don't hold an M.B.A. in finance, you can still use the non-financial information you've got under your belt to pick winning stocks (see "How to Pick Winning Retail Stocks, Part 1 and Part 2" )
Follow our advice on investing in more 'concrete' assets.
Need to learn how to read a mutual fund or ETF prospectus? Here's your go-to guide.
Here's a look at how a country's central bank can inject billions into the economy.
Don't marginalize the gains in your portfolio. Learn how to keep an eye on a company's gross margins.
Here's a look at options pricing.
Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.
Catch up on his thinking on the hottest topics of the past week.
Investors will have to deal with a Fed meeting and another flood of earnings and economic data.
Ensco International and Echelon have the potential to move higher in coming days.
See who made what calls.
The addition of video is helping telecom companies compete against cable and satellite companies.
The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.
See who made what calls.
Keep on top of the market and the critical information you need to make more profitable investing decisions.
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