Your Money: Do your homework on company stocks before buying in, says wealth advisor
BATON ROUGE, La. (WAFB) - For many people, investing in the stock market is as easy as looking at the palm of their hand.
Thanks to apps like Robinhood and Acorns, many people can play around and get a DIY experience with the stock market on their cell phone. Now, the stock market is at an all-time high, with tech companies leading the way.
But wealth advisor, Ernie Burns, warns that you need to look closely at these companies before you put in the cash.
“Be cautious how you invest,” said president and CEO of Burns Estate Planning and Wealth Advisors. “If you see something on Facebook or TikTok and somebody’s made some money, it doesn’t mean you should invest in it. People are chasing things right now.”
Burns explains people are buying and selling stocks almost instantly because they’re following trends they see online or hear on TV. However, he still encourages you to analyze or do research into the companies you want to buy into. He wants you to question whether a stock price is overvalued or not. One example is Tesla. That’s one stock that continues to climb.
“Some of this uptick in the market that we’ve had, I’d say in the last three months, is due to rapid day trading buy in. You have to look at these companies to know what you’re buying into to make sure you are doing the right thing. This is your money. Don’t waste it,” said Burns.
Some companies may be making it easier for you to buy-in.
Tesla and Apple recently announced they will split their stocks, where they cut their high-valued stocks into several lower priced pieces of the pie. This doesn’t change the overall value of the company, but may make it more affordable to add those names to your portfolio.
If the DIY market experience isn’t for you, ask a financial advisor for help.
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