Three Investments You Need To Stay Away From This YearInvestment | March 7, 2011 at 7:44 am
Well, there are certain investments you need to avoid like the plague this year. Of course, some are obvious no-nos, such as email stock advice, there are some which are less obvious things to avoid, and these are related to how the state of the market is now.
The basic idea of a time share is this. You own a property partially. You purchase a period of time in a year where you can use the property. Time shares have been popular with regular holiday goers since ages, where people from two parts of a country or even from different parts of the world can get involved in a time share property and share it for holidays.
The basic problem is this, when you want to stop using the property, you can not stop paying for your share. You have to keep on paying unless you sell your share. If you do find a buyer, you can not sell it for what you paid for, but for a significantly lower price. Loss of money.
Inflation has been putting the axe on one of the most reliable and trustworthy ways to safeguard money, namely, Savings accounts. The rate of inflation was about 1.6 pc in the last year, and was about 2.5 pc on average in the 00’s. Savings accounts pay about 1 pc in 2010, which is a loss of .6 on your real savings. Do the math. Even if savings account interest rates rise over the years, inflation rates will rise as much.
Stock Advice by Email
Have you ever received a stock advice by email posing as an insider tip, an important new discovery or development that asks you to buy up as many shares as you can ASAP. The information in the email will be completely untrue. And if even if it were true, it comes under inside information you can not profit from without risk of a fine or even imprisonment.
This strategy is called pump and dump. Many people get this email and actually buy stocks, as many as they can. The demand rises, the price of the shares will rise rapidly. The person who is responsible will sell their stocks at a high price. And who gets left with the baby when the news comes out about these false emails?