Monday, February 11, 2008

Are Retail Stocks a Good Investment?

There have been so many articles recently about retail stocks being super cheap. So, should you buy? Fashiontary agrees that some stocks appear to be rather cheap but that doesn’t mean buy. If you have disposable cash and feel like experimenting – that is one thing. But, always remember to do your due diligence. The stock market is not an immediate get rich ticket and has been extremely volatile. So, even a cheap stock can cause damage to your wallet and drop further.

Take a look at Cold Water Creek [CWTR], the 52wk Range has been between: 3.40 - 25.69. That is quite a discrepancy and the past five days the stock has increased and decreased approximately 4%.

If you are a novice don’t jump too fast, assuming because something is cheap it will automatically increase. Maybe it will and maybe it won’t. Fashiontary recommends to shop wisely by doing your research, just like you shouldn't impulse buy a $1,000 purse. Diversify your portfolio and talk to an expert. Just remember, the money you put in doesn’t always come back.

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