Q&A: Stock advice for class: any suggestions?
In my class we have to invest in the stock market. It is more about learning about cost analysis than beating the street, so there is no penalty for losing money. There is, however, a bonus for having the highest return. We also only have TWO MONTHS to see any return, so there?s no time to buy and hold. So basically I have a, relatively speaking, risk-free environment to invest in. The issue is I don?t know what to do with it.
What I?m thinking is going for small cap growth stocks. I thought about emerging markets, but don?t know jack squat about them. Additionally, I?m having issues with knowing what sectors would be a good idea to expose my portfolio to.
So, what are some suggestions? I?m not looking for specific company suggestions, just general themes and ideas. Go with gold? Maybe some Latin American bank with a clean balance sheet?
Also, any sort of investment in bonds, mutual funds, and ETFs are not allowed.
Goldsenze Answer:
It?s a stupid assignment because there is no downside. Your teacher should grade you base on the investment return. I enter a stock market gain before and it?s not realistic. It?s a waste of time.
You need to put money in the gain the experience like what some colleges do.
Since, you only have two month and no risk, look for high beta stocks.
I like RIMM since, the playbook will be out in 2 months.
FXI, it?s had underperform other index for the past few months.
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