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Is Now The Time To Invest?

During the last two years (2008-2010) we’ve seen the stock market as well as the housing market and financial institutions go through a very rough period of correction. Now in the second half of 2010, average investors are wondering if they should start investing again. Well it depends on what you’re going to invest in.

We are no where at there bottom or the worse of it yet, but at the same time I’m looking at many different investments I may want to get in on. I will say though that the stock market is not one of them at this time. In my opinion, there is no reason for the DOW to be over 10,000 and I do expect it to come back down below 9000. When I do not know, but it will be there in due time.

What about precious metals? There is only a limited amount of gold in this world and it’s one of the few things that will retain it’s value (if not go up) in our present economic condition. I’ve been building a portfolio of just different precious metals. If you’re looking to buy gold make sure you are buying actual gold pieces and not some paper stock that trades off of gold. Between the two, only actual gold will be worth anything when and if our economy crashes.

As for the housing industry, I suggest you take your time and look for solid and profitable deals. The housing market will not turn around any time soon so you will have plenty of time to find the right one for you. We will see foreclosures going on for years to come so prices will stay in the general area if not come down even more. As an investor, you will need to look at properties that will return to good value in five to eight years from now. The days of flipping houses are on hold and will be that way for some time.

Stay away from investing in any financial institution since they are still not sure of what will happen in time with all the government regulations that will be coming down the line. So is it time to start investing? Yes if you take your time and study what it is you want to invest in.

What happened to the stock market today?

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Stock Dividends And Their Benefits

When any company makes a profit, the directors may divide the profit among the stockholders as ‘dividends’ or they may decide to use it to expand the business. Dividends may be paid only out of the company’s profits only. When profits are used to expand the business, the directors and stockholders may decide to issue more stock to show that there is more money invested in the business. The new stock will be divided among the stockholders as a ‘stock dividend’. Hence, stock dividend could be conveniently defined as the distribution of extra shares among the stockholders or investors of the company.


Many companies and financial institutions offer shares to the investors in order to generate money for the organization. The investors also put money in the organization through these shares. Such an investment is greatly dependent on the reputation and performance of the organization. Hoping to get good returns in the form of cash dividends or stock dividends is the main reason behind making these investments. There are many advantages of stock dividend. Firstly, no tax is levied on such dividends, much to the relief of the stockholder.


In case a stockholder earns some stock dividends from the company he invested in, he or she is not expected to pay any type of tax on that until he or she decides to sell the additional shares. Secondly, the stock dividends earned by the stockholder enables him or her with additional ownership in the organization, which in turn may prove profitable to the stockholder in the future. The stock dividends are given to a particular stockholder depending on the number of shares he or she holds. How lucrative a certain stock dividend is going to be; again depends on the performance of the organization in the market.


I might add here that I am the stockholder in a few companies of good standing in the commercial market. I have always been a little skeptical before investing in any stock or shares. Somehow, going by the sea changes that have been happening in the economic scenario, I have always opted for cash dividend instead of stock dividend. Cash dividend is one way of ensuring that you have ready cash on your hand at the end of the year based on the company’s earnings. This money can be utilized for reinvesting, if need be. What if you opt for stock dividend, and suddenly the company does not perform well and reports sick, all your shares will nothing but worthless pieces of paper. You will have to again wait with bated breath and hope that the company is revived with a rehabilitation package in place.

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