Here is a short list of bad investments to avoid when you are broke because there is uncertainty in the Stock Market due to an unstable economy.
If you are broke, you don’t have any money to speculate.
This market isn’t as good as it seems.
It is just a form of gambling in which more than 80 percent of those who participate lose.
Many companies offer you gold-buying plans.
The deal consists of a buyer who puts a deposit on the gold he is to receive.
This type of deal is very shaky because the cost of the gold contract is more than the money needed to buy a gold future.
Another problem with this deal is that small amounts of gold are harder to sell than large amounts of gold.
As an investor in coins, knowing the current prices and comparison shopping are very important.
You will probably pay less at a coin dealership than you would pay for coins through the mail.
Coins are a good investment if you know what you are doing.
Tax shelters can be a bad investment for investors who get the bulk of their income as salary.
This type of tax deduction is only a postponed liability that could come up later unexpectedly.
The liability isn’t worth the risk.
When buying a unit share of an investment, it is important to note that the smaller the share of the investment you buy, the worse the investment is overall.
When a small unit of a large investment is bought, a large percentage of the investment is promoters’ fees, management fees, compensation fees, etc.
The greater your share of an investment, the more it is worth.
Therefore, a 200 percent share of an investment is worth more than twice a 100 percent share.
What broke (poor) people should be investing in is canned food, water, basic and prescription medicine, off-grid supplies for lighting, cooking and heating, water storage, seeds, canning equipment, etc.
In case you are already invested in Comcast, AT&T, etc., how will you power your electronics?