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Originally Posted by BigBen931
An old and rich man once told me "Invest in what makes your life better..."
Long story short: Look around you and find things that you use, THAT MAKE YOUR LIFE BETTER, and invest in the company that makes them.
I use google all the time. therefore GOOG
I use my cellphone all the time. Therefore Motorola
et cetera, ad infinitum. Do you like the pizza place down the street? Ask if they need capital.
Stock markets can be volatile, and have large short term fluctuations. I would recommend an indexed fund, or a real-return bond. The rate is pegged to the interest rate or the CPI, and therefore you are always doing better than inflation.
Only invest what you are willing to lose. If you can't afford to throw the money away, I would suggest a secure tool like GICs or term deposits.
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I have to agree with this, however if stock is what you want to buy, a nice buy right now to have for when the economy improves is Cedar Fair or Six Flags, as there are rumors that Cedar Point's owner (Cedar Fair) maybe buying rival Six Flags.
Everyone has their own way of deciding how to buy, when I was a stockbroker in the early 90's I used this criteria for my clients and did ok for them: PE under 20, not heavily in debt or leveraged, good emploer/employee relations and small but growing. I specialized in finding stocks under $10/share to invest in.
There are some great companies that match that criteria and can boom and make you decent returns.