Article Abstract:
Investors may be concerned about a drop in Wall Street, or that a bubble may have developed in internet stocks that could burst, and may seek safe assets. Cash is one such asset, though there is a risk of a drop in interest rates, especially if a crash occurred. British government securities (gilts) held to maturity offer certain nominal returns, though inflation could erode real returns. Long-terms assets expose investors to inflation risks, and short-term assets expose investors to reinvestment risks. Index-linked gilts are in demand from pension funds, so returns have dropped. Some equities may offer safe investments, but which equities varies from one investor to another.
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Article Abstract:
There are good reasons for older people to invest in stocks, despite the risks involved.
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Article Abstract:
Day traders are private investors who differ from traditional investors in having little interest in funadamental analysis or future earnings of companies that they invest in. They purchase stocks and sell them several times per day, and may only hold stocks for minutes. This style of trading has become possible as a result of the internet. Day traders have a particular interest in internet stocks and new issues. Day trading involves risks, since prices can drop rapidly over the day. False investors may also be supplied to investors who should double-check information that they recive.
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