What are Investment Ideas?

Many services today offer investment ideas to consumers, some through subscription services, some available on a public website.

Almost none of it is meant to constitute investment advice, in the legally-defined sense, because investment advice is only to be given by a licensed professional with regard to the individual situation of each person. Investment ideas are published by websites and subscription services to educate and inform people about possible ways to make money investing. This might include tips on stocks, bonds, funds, options, real estate, collectibles, and so on.

Many investors are not highly educated, but are only acting on what information they had available to them. These traders-next-door do not necessarily influence prices in a dramatic way, at least not as much as institutional traders. Institutional traders representing hedge funds, mutual funds, ETFs, pensions, insurance companies, banks, etc, will do their best to not have their next moves advertised on such investment idea services.

Some services advertise that they have knowledge of things that most investors do not have access to, but of course insider trading is illegal, and in most cases all relevant information will be priced in to the securities before it gets to the everyday investor’s desk. Different publications may use different strategies to come up with their suggestions: some may use earnings momentum, some may use value investment analysis, some may use technical indicators.

Some websites and services have apps and personalized accounts that are designed to educate the investor to make their own decisions and come up with their own investment ideas.

Many people go to their investment adviser in town, but, with the wealth of communication resources and computational speed available today, staying at home and using online services and communications is becoming a more appealing, and often more affordable option for most people to find investment ideas.

What is Investment Advice?
What is Investment Analysis?