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To: SeekAndFind

PILPUL ALERT

#3 cannot be answered accurately, for two reasons.

First, many individual stocks have a lower beta than many stock mutual funds: for example, Kraft Foods (KRFT) would probably be safer than the Fidelity® Low-Priced Stock Fund (FLPSX).

Second, a “safe return” only occurs when a stock actually appreciates in value, and/or provides a dividend. If the stock market in general is losing value, contrarian stocks will appreciate in value, so buying an SP500 fund or a Russell2000 fund in a stock market recession would provide a negative return, while purchasing a dividend-producing stock of a company providing necessities—like, for example, Kraft—would provide a “safe return.”

Anyone with an IQ of average or better could be taught this, though it generally only begins to be taught in college-level microeconomics courses, or in MBA-level personal finance courses.


35 posted on 05/09/2014 9:15:23 AM PDT by chajin ("There is no other name under heaven given among people by which we must be saved." Acts 4:12)
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To: chajin

Are you trying to confuse people with facts?


66 posted on 05/09/2014 10:08:18 AM PDT by Rusty0604
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