Foreign currency trading – They are conservative and meant for the nonprofessional investor who is not particularly anxious to run a risk which may mean the end of his savings.
The underlying principles in laying out the investment program of the $5,000 investor are that he has not much capital, that he probably had to work hard and long to accumulate his $5,000 and that he is not a high income earner. These assumptions may not be correct, but they are the ones used here. Because $5,000 is not a large sum to invest, conservatism has predominated in making recommendations for investments. Hah0 of the entire portfolio is in conservative investments which involve no risk”a time deposit in a bank, a building and loan association deposit and a savings bank deposit. One-fifth of the portfolio ($1,000) is in a deposit in a finance company at 6%, while 30% or $1,500 is in the form of a short term loan to a finance company at 12%. The term should not be over one year.
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