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Tips for investing in the stock market in 2017

The US market has always been a volatile target for investment. However, with a plethora of research, information, data, analysis, advice and tips available to investors today, one could invest in equities and profit considerably from them. Here are some great ideas from experts as to what stocks to buy and hold in 2017 for how long and how exactly you can try to take advantage through the US stock market:

Tips for investing in the stock market in 2017

The Warren Buffet advice: One of Warren Buffett’s prime investing philosophies espouse investing with the long-term in mind. He doesn’t mean ‘forever’ – instead, he says that the since the market has always had an upward predisposition over a long period, the best technique to invest is to buy good-quality shares at reasonable prices with the intent of holding onto them for a long time. A time frame of at least 10 years is a fair one and one should forget about expensive and cheap markets since markets could go either way – ascend in the right environment and plummet in others. Another advice it to not buy all stock in a single go – for instance, if one wishes to invest in Apple and has $10,000, he should probably invest $2,000-3,000, to begin with, and in a few months if Apple still looks great, put in some more money, and so on. This way, one can take advantage of average prices, reduce risks and capitalize on lower, cheaper prices of stocks.

Diversify: ‘Don’t put all eggs in one basket’ has been the motto of investing in the stock market. While a simple 60% stock, 40% bond portfolio has performed well in the past, investors have been spoiled with its success. Instead, one should now have around 10-15% of their portfolio in cash (which hedges it) and invest in bond alternatives such as real estate investment trusts, master limited partnerships, preferred stocks, high-dividend stocks, etc.

Beware of slow market momentum:  While stocks have been trading sideways for a while now, the bear market won’t last long and could stir suddenly. Long-term investors should be looking to buy high-quality, blue-chip stocks, especially dividend stocks of good, stable companies in the consumer staples, defense, healthcare, technology, consumer discretionary and the utility sectors.

As for a final piece of advice, investors should ideally take time out to properly thoroughly research stocks, for it could bring them profits. The combination of smart diversification and thorough analysis could beat the market over a period of time, of course.

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