The #1 Stock Investment

And the winner is …

In a hot stock market growth stocks will more than likely lead the pack. From time to time value stocks come into favor and reward investors with the highest returns. In a raging bull market small-caps have often proven to outshine their large-cap counterparts.

Stock market sectors and segments tend to go in and out of favor in a manner that is far from predictable for most of us.

If you could hold just one stock investment what should it be? If you lack experience as an investor, where should you invest your money to get growth?

Your #1 stock pick should not be a stock or stock fund that tends to go in and out of favor subject to the whims of the market. Your first choice and your largest equity holding should always participate when the market rallies. So, how do you as an inexperienced or average investor find this #1 stock investment … the most consistent performer of them all?

Market professionals follow the S&P 500, which is a major stock market index like the Dow Jones Industrial Average is. When the S&P 500 index is up, stocks are up. When it is down the stock market is down. The only way to be sure of participating in the action every time the market rallies is to own all 500 stocks in this index.

The good news is that you can be invested in all 500 of the major stocks in this index by holding just one mutual fund. You will never under perform or miss the market again, because you will virtually own the U.S. stock market.

The easiest and most cost effective way in the world to own the #1 stock investment is to simply buy a no-load S&P 500 INDEX FUND. These mutual funds are offered by some of the largest and best mutual fund companies in America.

Plus, if you go with the right one, it costs you zero to buy and sell shares. And it costs you less than one-fourth of 1% a year to hold your investment. That includes all expenses, including management fees.

If you own just one stock investment, make it an S&P 500 index fund. If you want to have several different stock holdings, make this your largest.

You won’t beat the stock market, but you will never miss out when stock prices are on a roll.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.