At Preferred Securities Group, Inc., common stock investing services are based on the qualities that have defined our firm: quality, integrity and service. We believe that an independent source of research is important to maintain an objective view of today's investment opportunities. Our recommendations are based on high quality, objective equity research, which is provided to Preferred by some of the nation's leading independent stock research specialists.

Why do we value independent research? Because it means that when we recommend one stock over another, we have nothing to gain, except your confidence.

Equity securities are just one part of a total portfolio that's appropriately diverse. Diversifying among several types of investments is a strategy we recommend, because it helps preserve the safety of your capital. In keeping with our belief in diversification, Preferred follows a carefully selected group of stocks that fall into three general categories: yield, growth and value stocks.

Yield or income stocks have a history of paying out a portion of their annual profits to shareholders in the form of high quarterly dividends. Growth stocks reinvest most of their profits back into their business to expand and strengthen it so the stock's value will grow. Value stocks are generally bargains-they're out of favor now, but have improving prospects for future growth in earnings, sales or dividends.

The individual stocks we recommend within those groupings are generally conservative equity choices, which have been thoroughly studied by the Wall Street firms that provide our independent research.

Personal Service

Your Preferred investment broker can help you determine which individual stocks best fit your personal investment objectives. That guidance is the benefit of consulting a financial professional. When you invest with a Preferred investment broker, you can expect fair, accurate execution of your stock trades, at the best available market price. When you need assistance, our brokers are accessible in person and on the phone, and our service is personal and friendly.

When Is The "Right" Time to Begin Investing in Stocks?

A point of concern for many stock investors is deciding when to start investing. Since stock prices can fluctuate daily, how do you know when it's the right time to enter the stock market, and when it's wise to get out?

Most investment professionals agree that time, rather than timing, is the key to prudent investing. That is to say, the longer the period of time you're in the stock market, the longer you have to reinvest earnings and dividends to keep your portfolio of stocks growing. Building a strong equity portfolio happens over time, not over night.

Unfortunately, there's no magic cue that tells you when to start. The right time to begin investing in stocks is as soon as possible. Instead of timing the market and trying to guess where it's headed, we suggest that you simply start as early as you can. When you invest a regular amount over a period of many years, you can ride out the normal ups and downs of the markets.

If you're concerned about the timing of your investment, you may want to consider making regular investments in a fixed number of shares over a period of time, regardless of the current state of the market or the stock's price on the day you purchase shares. Using this strategy can ease your concerns about where a stock's price will head after you invest.

If you've never invested in stocks before, you'll be comforted to know that in addition to providing objective research and professional advice before your purchase, your Preferred investment broker will be there to help you learn more about the performance of your stocks after you invest. Our attention to personal service sets us apart.

A Historic Comparison: Stocks, Bonds and Inflation

Everyone knows how inflation affects the prices of the goods and services we buy. To maintain your purchasing power, you'll need investments that can keep the value of your portfolio ahead of rising costs. Which investments fit the bill?

The table below shows how dramatically inflation has affected the return on five popular investments over the last 69 years. As you can see, common stocks have grown in value more than the other popular investments.

Real rate of return

An investor who purchased only corporate bonds over the last 69 years would have earned 5.41% per year, on average. But when we adjust that return for the erosive effects of inflation, the result is the "real rate of return." This measurement shows how much- or how little we have improved the purchasing power of our dollars through various investments.

Notice that investors in long-term Treasury bonds have earned only 1.65% per year after adjusting for inflation. Other fixed-rate investments and savings vehicles have also done little to help improve investors' purchasing power.

All of these are quality investments, and each is chosen for a distinct purpose. In fact, your investment broker will likely recommend that your own a combination of many different types of investments.

In order to reap the rewards of stock investing, you'll have to accept that your investment's price can fluctuate daily with market conditions. And when you sell shares of stock, they may be worth more or less than when you purchased them.

There are risks to stock investing, still the message of these performance numbers is clear: If you're investing for the long term and want to enhance your purchasing power over the lifetime of your investments, having stocks in your portfolio is crucial.

Preferred Securities Group, Inc.
5301 N. Federal Highway, Suite 150
Boca Raton, Florida 33487
1-800-909-9150
Tel. (561) 998-2170
Fax (561) 998-2177
Email: info@preferredsecurities.com

Member N.A.S.D., S.I.P.C.
Florida