With all the information on investments on the Internet it should be easy to make money in the market, right?

[ohio_peasant]

Most of the "pros" and "experts" are at best pros and experts at making money for themselves. They do this by working as journalists, advertisers, salesmen, advisers, middlemen and the like. While not necessarily outright liars, and perhaps even being entirely sincere and competent, it is very difficult even for a seasoned pro to consistently beat the market with his/her own money, let alone with clients' money. The reason to appeal to a professional is to obtain insurance against one's own worst nature. For instance, a lottery winner might benefit from a professional financial adviser who prevents his client from making rash or emotional moves, from overspending, gambling on the latest fad investments, day-trading and so forth. But once fees and taxes (the latter from high churning) are subtracted, it is unlikely that the adviser will generate a compounded rate of return that beats the broad stock averages.

The best move right now is to do nothing. Nothing at all. It's better than doing something impulsive and regrettable.

Later, after catching one's breath, the best option is probably some mixture of stock index funds and short-term bond index funds.

[acegolfer]

Originally Posted by Cranston

Bubbles are proof that the market's can be inefficient.

I'd like to hear more of your logic.

[skinnayyy]

Originally Posted by Robyn55

What's "quite a bit of money"? If it's really big bucks - like $10 million - why not just invest it in high quality munis - and relax? And how old are you? If I had to guess - you're a younger person of relatively modest means who has inherited 5 or perhaps low 6 figures (which seems like a lot to you - but it really isn't a lot).

FWIW - even if it's a relatively small amount of money - like $200k (but big to you) - don't do anything for a while - perhaps a long time - perhaps never. If you don't know anything about markets - learning with an amount of money that means a lot to you can be a very painful experience.

Note that a very large % of people who come into amounts of money that are much larger than the amounts of money they're used to dealing with tend to lose or fritter away all the money in a very short period of time. I'm a retired personal injury lawyer - and some people I know who got large $$$ settlements thought they'd be good stock pickers - and wound up losing every single dollar of their settlements. Then - of course - there's the history of people who win lotteries.

With regard to stocks in particular - in general - about 50% of an individual stock's movement is determined by movement of the markets in general. Another 25% will be sector related. And only perhaps 25% (or even less) will be the result of an individual stock pick.

But - if my guess is correct - that you're a person of relatively modest means with a relatively modest inheritance - just put the money in the bank (or an online savings account). And use it to go to school - or for your kids to go to school - to invest in a business - to buy or improve a house - to put some $$$ in the bank for your retirement - whatever. Don't spend an hour on the internet and conclude that you can double your money every year picking stocks. And - if you feel an irresistible urge to do stocks - take 10% of your inheritance - and do it. If you make money - fine - you'll have more to invest. And - if you lose most of it - you'll still have 90% of your inheritance left. Robyn

That is some very good advice for someone who comes into a chunk of money.