What are the best stocks to invest in for only 2 months?
We want to make the most money with $100,000.
Thank you for your question. This may not be the answer you want to hear, but I wouldn’t recommend any stocks with a 2-month time horizon. The window of time is much too small to invest with a high confidence level that you’ll actually make money during that time. Investing in stocks is done best when there is a long-term frame of mind involved. This allows for the ups and downs of the market to even out and deliver an average rate of return. In a 2-month time period, there is no telling what the direction of a stock or stock portfolio could do. It could be up or down 30% or more.
If there was a way to make money in a 2-month period on stocks, you’d see many people taking advantage. The truth, however, is that making money on stocks often takes time, patience, and a strong belief in your investment philosophy. In my opinion, putting money in stocks with such a short time horizon would be similar to taking your money to the nearest casino. It’s a complete gamble.
The real question is what do you need the $100,000 for? Many times, retirees think that once they retire they will need all of their retirement savings. That’s actually not usually true. They usually only need a small percentage of their total portfolio to satisfy their income needs. I would encourage you to evaluate what your need is and, if you truly need 100% of the $100,000 in two months, I would say be smart and don’t risk losing what you already have.
A lot of that depends on what the goals are for the money and whether you can afford to lose a large portion of it or not. Ultimately, there are generally no "get rich quick" options in the investing world that don't carry a large amount of risk with them. Higher returns are rewards for taking more risk; less risk is not rewarded with high returns.
Furthermore, nobody (regardless of what s/he may tell you) knows what is going to happen in the markets over short periods of time...and 2 months definitely qualifies as a short period of time. So, to try to suggest a stock, or stocks, that could make the "most money" over a 2-month period would be pure speculation, at best.
If it is money that you can afford to lose such that it won't cripple you financially, and you are merely trying to "play the markets" to try to make some money, your guess is probably as good as anyone's as to what stock, or stocks, may be substantially higher 2 months from now. Though please understand, it would truly be a guess and there is no way that anyone could, or should, guarantee that it would be higher 2 months from now.
If this is money that you definitely need for something 2 months from now (for example, a down payment on a house) and cannot really afford to have less than the $100,000, then you should put it in a savings account and accept the fact you aren't going to make much on it over the next 2 months.
Unfortunately for those that need to make money fast, the markets tend not to be the best bet. The markets are great for those that have time, patience, and discipline to formulate, implement, and stick to an investment plan. Those people will generally be rewarded over time; however, those who are trying to make money quickly in the markets may be rewarded, but they may be punished as well.
That’s not the right question. If you only have 2 months, sure, you can invest in stocks, but stocks are volatile and it’s nearly as likely that you’ll have less money after two months as that you’ll have more money. If you need to still have $100,000 at the end of two months, the only place for that money is probably an FDIC-insured savings account.
Even if you can afford to take risk — “what stocks should we invest in” is still almost certainly the wrong question unless you are simply gambling because the stock market as a whole moves about with great randomness over the short run, and individual issues even more so. If you’re determined to put that money at risk in the hopes of making more (and understand fully that you may well have a lot less than your starting value two months from now), consider a low-cost diversified portfolio consisting of an index fund or two.
But really - “2 months” is a red flag. Stock market investments are LONG term investments, not two month gambles. Money you need in two months should be in cash or cash-equivalents (such a possibly a CD which matures in 2 months, or a money-market fund). Not stocks.
If your time horizon is two months you should not make any stock investments. A two month time horizon is way too short to make a stock investment. If you’re going to need your funds in two months, it is best to keep it someplace safe such as a money market or higher-yielding checking account, not a stock!