Every Wednesday, Legg Mason Wood Walker financial adviser
Jonathan Murray answers e-mail on your investments. To be included
next time, send
your questions.
> From: Goldstein, Jon W.
Sent: Tuesday, June 11, 2002
To: ‘Murray, Jonathan P.’
Subject: $
Hello, Jonathan,
For first-time investors, the hardest part can be getting started. It can seem like a jungle out there, full of convoluted terminology and dangerous rip-offs but also fertile opportunity. Our first e-mailer would like to know where to begin.
Here’s the question:
I am someone who has no knowledge of investing. How do I identify the
rip-off scams from true investments? Where is a safe place to start
investing?
Cinomod
From: Murray, Jonathan P.
Sent: Tuesday, June 11, 2002
To: Goldstein, Jon W.
Subject: RE: $
Dear Cinomod,
As a novice investor, you should first start by educating yourself about
the
markets, investment strategies and products. Start reading the Wall
Street
Journal, Barron’s or other financial publications. Consider taking an
investments course at a local college. If you need a “financial coach,”
hire an investment adviser or financial planner.
Once you’ve learned more about the world of investments, you will be in a
better position to differentiate between “scams” and legitimate investment
opportunities.
A reasonable place to start is a professionally managed, diversified mutual fund that matches your risk/reward profile. It should
be
listed daily in the newspaper, and should send you regular statements.
Choose one that has a proven history of consistent results.
> From: Goldstein, Jon W.
Sent: Tuesday, June 11, 2002
To: ‘Murray, Jonathan P.’
Subject: $
What is your opinion of the short- and long-term outlook for both AWE
(AT&T Wireless Services) and AT&T considering the merger activity of
AT&T Wireless and spin-off of AT&T Broadband? I have 100 shares of each
and have
watched both sink steadily over the last 18 months.
Thank you,
Jim
From: Murray, Jonathan P.
Sent: Tuesday, June 11, 2002
To: Goldstein, Jon W.
Subject: RE: $
Dear Jim,
I would need to know a lot more about your overall financial picture
before
I could give you appropriate advice on T (AT&T) and AWE (AT&T Wireless). For certain investors,
I
would say to buy these two companies. For others, however, they should
be
avoided.
They might or might not make sense for you to own. Things for you to
consider are your age, your risk tolerance, the other stocks you own,
your
time horizon for this money, whether this is a taxable or tax-deferred
account, your current asset allocation model, etc.
Generally, these
stocks
look cheap and telecommunications stocks seem to be oversold, but
just
be careful … they are down for a reason.
> From: Goldstein, Jon W.
Sent: Tuesday, June 11, 2002
To: ‘Murray, Jonathan P.’
Subject: $
Thanks, Jonathan.
Talk to you next week.
