ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commodity
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Bond
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Stock
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Savings Account
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Detailed explanation-1: -You buy stocks when they’ve hit a bottom price, and you sell stocks when their price peaks. That’s how you can generate the highest returns.
Detailed explanation-2: -If you have some savings to invest, feel ready to buy stocks and don’t need the money for at least five years, then yes, jump in. Even when the market has lows, if you’re invested for the long term, you’ll have time to recover losses.
Detailed explanation-3: -For long-term investors, it’s often best to ignore the ups and downs of the market. Instead, focus on your plan, and make sure that your money is well-diversified according to your risk tolerance. That’s it. Don’t rule out investing when the market reaches new highs-it’s supposed to do that.
Detailed explanation-4: -The idea is to buy the strongest stocks (as measured against the performance of the overall market), hold these stocks while capital gains accumulate, and sell them when their performance deteriorates to the point where they are among the weakest performers.