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Investing > Stocks/Bonds
The second-term Bush administration has pledged to invest a portion of Social Security funds in the stock market. Wall Street smells a bonanza. Stay on top of this and other developments.


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Bush victory seen as boon to many industries. President Bush's election victory is shaping up as a potential bonanza for Wall Street, where firms are salivating about the possibility he will follow through on his pledge to allow private investment of Social Security funds.

Got a big refund check? Put it toward your future by investing in a low-cost fund. Suppose you find yourself with a little windfall in the next few weeks, say, $2,300, this year's average tax return. Would you pay off some bills, go on a cruise, or invest it in mutual funds?

75 years later, can The Crash happen again? With more people in the stock market than ever before, nobody seemed to pay much attention to the bad news that cropped up throughout the year in 1929. Individual investors were buying stocks on margin, speculators drove up prices and the government had a hands-off policy on the economy.

Do it while young. The smartest investment rule to teach your teen is simply this: Start young. Investing when he's young will give him a much greater return. If he doesn't start investing until he is older, his money simply is not going to do the same work for him.

Balanced funds can be a safe and simple strategy in a sideways market. Putting your money to work in a dull market is no easy task, but staying on the sidelines can pose a greater danger for small investors: If you wait until the market seems like a comfortable place to be, you might never jump in.

Now is a good time to think about diversifying your investments beyond your business. For many small company owners, every available cent goes into their enterprise during the first few years of business. Personal portfolios, including stocks and mutual funds, just aren't a priority.

Planners caution against overdiversifying portfolios. Amid a grueling three-year bear market, investors have been constantly reminded of the need to diversify their financial portfolios. But analysts worry that investors might respond by choosing too many mutual funds, a strategy that can be equally hazardous.

Baby boomers moving into investment clubs. Business, marketing, real estate, entertainment _ baby boomers have set the trends in all those areas. Now they're becoming the dominant force in America's investment clubs.




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