Lately I’ve been looking into investing in the stock market, along with brainstorming numerous business ideas, in an attempt to make millions and secure a nice financial future. This is a great time to get in, with stock prices still fairly low and the economy slowly easing its way back to health, but I’ll freely admit that I know very, very little about the stock market. One thing I do know is that you should invest in sectors that have growth potential and will have a chance to keep growing substantially. The idea is long-term, continued growth, but a quick startup within a few years will make a lot of money.
The rise of the internet and the vast amount of tech companies made a lot of people filthy stinking rich, and every investor looks for the next big industry that could potentially grow 1,000′s of percentage points quickly and then remain stable with continued growth. The green movement (alternative energy, green products, organic food, etc.) is a potential darling for investors, although like any other industry within the stock market, it is a gamble. Personally, I think this would be a great industry to invest in because it has unlimited potential and it’s also something I believe in. The green movement is good for the environment, good for our health and there is a push within the government to support these new green technologies. Plus we’re running out of oil and gas at a breakneck speed. It seems like a win-win right? A perfect way to turn my small savings into a compounding mean-green portfolio worth millions.
Well, the only thing (obviously not the only thing) wrong with this idea is that a lot of these technologies haven’t yet become profitable, and some experts claim that it may only lead to a ‘green bubble’ similar to the housing bubble that caused the ‘Great Recession’. Solar energy seems like a wonderful idea and a perfect investment opportunity, but the technology is far from cost-effective for most people in the U.S. and even most major businesses. This article at Entrepreneur.com gives some more reasons why this may not be such a great investment idea. I’m going to keep looking and researching green companies, but even if this isn’t the next big investment opportunity, I think it’s a great industry to invest in.
I would be more inclined to examine whatever companies within the sector they specifically belong to (like auto, retail, energy, etc.), rather than the ‘green movement’ as a sector itself.
All in all though, I would say now is a good time to start putting money into the market again; the general trend (DJIA, NYSE Avg, S&P) is up. Also, I believe the Dow is at/near an 18 month high…
In my opinion though, the best companies to invest in long term (for a potentially better return than savings) are the most fundamentally sound companies. Are they leading their sector? What is their market cap? Quarterly announcements of earnings and losses from a historical perspective?
Read a lot of books on this shit before you put any money into it. And don’t get into trading haha…
Yeah I’ve been reading a lot of stuff online. That article is more specific about individual companies… it’s pretty interesting. I’ll definitely wait a while but now seems like a great time to start.