Investing In Forex Or Shares What Should Your Aim Be?
A question that a lot of investors ask is whether they should aim for capital appreciation or a nice dividend.
With Forex this question does not arise as capital gain is the main objective.
A fat dividend and a high yield which persuades investors that the stock has been undervalued may well create a small stampede that boosts the price and thereby reduces the yield to more conventional levels.
It is also conceivable, however, that one could wait a discouragingly long time for Bethlehem and Youngstown to merge (the Government has frowned on the idea) or for Northern Pacific to make more from oil than from railroading.
The big problem of the capital-appreciation man is that he is dealing in forecasts and predictionsand on a larger scale than his brother who simply wants to figure the chances that General Foods will continue its $2 dividend.
There are indicators which make the task something more than guesswork, but it is difficult nonetheless. Corporation directors are notoriously close-mouthed about any action affecting the fundamental structure of their company; it is most unlikely...