In investing, six mistakes that'll make you pay

The Ticker

October 26, 2001|By JULIUS WESTHEIMER

HAVE YOU made many investment mistakes? Here, from Standard & Poor's Outlook, are "Six Big Investment Mistakes:"

"Playing `hopscotch,' namely, skipping from one stock to another. This is costly in brokers' commissions, capital gains taxes and missed opportunities.

"Unwillingness to take a loss. When an investment goes contrary to expectations for some time, look for fundamental weaknesses under the surface.

"Buying only low-priced issues. Many people feel happier with 100 shares of a $10 stock than 10 shares of a $100 issue. `Cheap' stocks often prove the most expensive in the long run."

"Following the latest `fashions,' namely, buying fashionable stocks while paying little heed to fundamentals. This trend pushes prices up to unwarranted levels before they come crashing down.

"Other mistakes: Not getting all the facts before investing and failure to exercise patience."

GOOD NEWS: "In 2002 you can use money in your tax-free education IRA to pay not just for college tuition, but also for elementary and secondary schools, private or public.

And you can save more - $2,000 a year, vs. the old $500 cap. The annual income for joint filers rises to $220,000, up from $160,000." (Smart Money)

WALL STREET WATCH: "Recession gloom is spreading, but this is a positive note because the capitulation phase of a bear market is often triggered by recession headlines." (InvesTech Research)

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