Stock Investment Advice for the Short Term

Here is some stock investment advice for you for the short term.  Remember to consult your registered investment adviser before taking on any risk in the stock market or any other financial market.  Your investing decisions should be based on a number of factors, including your personal financial situation, goals and objectives.  A good financial adviser should be able to help you formulate a sensible, personalized plan for you.  They will also help you learn how to invest in the stock market carefully and with wisdom.

Here are some short term financial investment advice if you are in the stock market.  First of all, watch out for the sell in May affect.  This is where there tends to be a significant drop off in the stock market in May due to investors going on summer vacation.  This may not actually be the reason, but enough of the market believes that this is the reason.  This makes it important for you to watch out for this.  Your stock investment guide may mention this phenomena that happens in most years.

This is especially true for the current climate.  Investors are still very nervous about being in the stock market.  On top of that, most of the big stock investment companies understand this annual event, and they tend to take their capital out for the summer as well.  That may also mean that the best investments may be found in the summer as well.

Another thing you want to watch out for in stock investing for the short term is a market correction.  There are many analysts and experts who thing the rally is long overdue for a market correction.  This may happen over the summer because of what I mentioned above.  But it could also happen later on.  There is no immediate sign that this is imminent, but again, this is something you should be watching out for as an investor.  There are probably good stocks to invest in, even in such uncertain times.  But you need to be very careful.

In any case, the market is still in a rally and there is no sign of a correction coming soon, although it may be inevitable.  So if you think the entire stock market is good for investing overall, you may want to consider a broad index fund.  These would include the SPDR, which tracks the S&P 500 composite index.  You can also invest in something like th Vanguard Total Stock Market Fund, which tries to track 3,000 stocks that best represent the entire stock market.  These index funds are cheap and relatively easy to invest in with little hassle, compared to picking individual stocks or in actively managed mutual funds.

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