Investing in a better future

Tuesday, July 1, 2008

Stimulus Payment Blues

Stimulus Payment Having trouble deciding what to do with that stimulus payment? If you don't have the money earmarked to pay off debt. You might consider putting it away for savings. However, bank accounts nowadays only earn about 1~2% interest, if anything at all, or you may consider buying some stocks. Currently, the US is in a bear market, and stocks are generally at depressed levels.
One stock I particularly like is Google (GOOG), which closed today at the price of $534.73 a share. I have liked Google for a long time, they created AdSense, which helps people monetize their websites, and have are creating numerous ways to improve and promote the Internet.
Recently. especially after the botched attempt by Microsoft to buy Yahoo, and Yahoo's subsequent outsourcing of some search to Google, the lead for Google in search and advertising among Internet stocks will only get bigger.
Unfortunately, Google stock's per share price is very high. To buy 100 shares you would have to invest $53, 473 dollars! The amount of the stimulus payment may only be a few hundred dollars at most. So you could buy shares in a Hi-tech mutual fund or ETF that holds Google stock, or take a risk and only buy one share of Google.
Nonetheless, for me, with interest rates so low and inflation high (creating a negative real interest rate environment), investing now seems better than leaving money sitting in the bank losing value.

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