
Investment Strategies
Unexpected expenses can happen. If someone does not have an income, an income can be created using share income funds. Listed below are various Strategies:
- No strategy: Investors who don’t have a strategy have been called Sheep. Arbitrary choices modeled on throwing darts at a page (referencing earlier decades when stock prices were listed daily in the newspapers) have been called Blindfolded Monkeys Throwing Darts [no source]. This famous test had debatable outcomes.
- Dividend growth investing: This strategy involves investing in company shares according to the future dividends forecast to be paid. Companies with consistent and predictable dividends tend to have less volatile share prices.
- Smaller companies: Historically, medium-sized companies have outperformed large-cap companies on the Stock market. Smaller companies again have had even higher returns.
- Indexing: An investor buys a small proportion of all the shares in a market index such as the S&P 500, or more likely, an index mutual fundor an exchange-traded fund (ETF).
- Micro-Investing: Micro-investing is a type of investment strategy that is designed to make investing regular, accessible, and affordable, especially for those who may not have a lot of money to invest or who are new to investing.