Reader Q&A

Dear Sir:
I am a new investor and know squat about the market. I came across your site via Google and after reading through your site, I had a couple of questions. They are quite naïve I am sure. What would you recommend for a short term gain of at least 50%? Does it exist? Let’s say I have $5,000 to invest. Would you (suggest) any stocks or shares that would return double my money by the end of the year or sooner? Note that I encased “suggest”, as I know you are not here to recommend as you stated. I have called (2) brokers to date, and they really make me nervous with their tactics. Whatever info you can provide would be helpful. To be honest, I have about $20,000 I can invest, BUT that $20,000 NEEDS to be returned at least two fold under a year. I must be really making you laugh about now with my expected returns, but I have to ask. Thanks for your help sir.

No, no…we would never laugh at you. But I have to be honest—you have to bring your expectations back down to earth! Holy Toledo! According to the best statistics, it’s reasonable to assume that the stock market goes up about 10% a year. It doubles, on average, every seven years. Sometimes better, sometimes worse.
I would never, EVER say a stock could double by the end of the year. It’s ahistorical, and I would be highly suspicious of anyone who made that claim.
To quote Gordon Gekko (pbuh): You’re walking around blind without a cane, pal. A fool and his money are lucky enough to get together in the first place.
Don’t be that fool!
Best regards,
Eddy

Posted by on June 1st, 2006 at 2:34 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.