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Investing in Stocks: A Guide for Beginners

 
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Learn the basics of investing in stocks for long-term gains.

description: a person sitting at a desk, looking at a computer screen with stock market graphs and charts.

Investing in stocks can be intimidating for beginners, but it doesn't have to be. While many people think of investing as trying to make a short-term score in the stock market, it's long-term investing where investors can really see their money grow. By buying stocks in companies that have a history of growth and profitability, investors can benefit from the power of compounding over time.

One way to stay up-to-date on the stock market is to join a club like the CNBC Investing Club with Jim Cramer. This club gives investors behind-the-scenes market analysis from the host of Mad Money. By following the advice of experienced investors, beginners can learn the ropes and gain confidence in their own investment decisions.

If you're looking for specific stocks to buy or watch, here are five that offer good technical and fundamental indicators: Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), Facebook (FB), and Alphabet (GOOGL). These companies are leaders in their respective industries and have a history of strong financial performance.

Gen Z is also taking steps in the right direction toward building wealth, according to a recent Vanguard report. This generation is more invested in index funds and ETFs than previous generations, which can provide a diversified portfolio with lower fees and less risk.

While several publicly traded companies have links to artificial intelligence (AI), it's important to consider whether AI stocks have a place in your portfolio. Companies like Amazon, Alphabet, and IBM (IBM) have invested heavily in AI research and development, but it's important to evaluate their financial performance and growth potential before investing.

For beginners looking to start investing, choosing the right brokerage account is crucial. Robinhood and TD Ameritrade are two popular options for their user-friendly interfaces and low fees. It's important to research and compare different brokerage accounts to find the one that best fits your investment goals and budget.

One emerging technology that has stoked investor interest is generative artificial intelligence (GPT). OpenAI's ChatGPT is an example of this technology, which can generate human-like responses to text prompts. While this technology has potential for a range of applications, it's important to evaluate the financial performance of companies investing in GPT before investing yourself.

Stocks play a key role in any investment portfolio, but it's important to learn how to buy stocks before diving in. This involves researching companies and evaluating their financial performance, as well as understanding the basics of stock market trends and fluctuations.

Finally, it's worth noting that the past year has been a tough one for real estate investment trusts (REITs), with total returns (price + dividends) for the equity REIT index down by over 13%. While REITs can provide a stable source of income and diversification, it's important to consider the potential risk and rewards before investing in this sector.

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