It's fair to say that investing isn't a 'one size fits all' type of business.
In fact, it's because investing is so personal, with so many different viewpoints and personalities involved that the stock market behaves as it does.
Of course, countering the millions of individual decisions is that herding instinct too!
If you were lucky enough to have a spare $2,000 that you wanted to deploy into the share market, your best strategy for deploying the cash would depend on your personal circumstances and your approach to investing.
For example, if you were completely new to the world of investing and the share market it might be prudent if your first investment was into a listed investment company (LIC) such as Argo Investments Limited (ASX: ARG). This strategy would provide you with immediate diversification and also could act as a good springboard to learning more about the market and a range of individual companies within Argo's portfolio.
In comparison, if you were already an experienced investor but still young, a growth stock might be appropriate for you. Companies such as Ramsay Health Care Limited (ASX: RHC) or REA Group Limited (ASX: REA) might be two companies worth considering given their market-leading positions, strong balance sheets and global growth profiles.
Meanwhile, if you happen to be entering the retirement stage of your life then income could be key. A stock such as Telstra Corporation Ltd (ASX: TLS) with a dependable fully franked dividend might be what you're after.
Finally, if you happen to already be fully invested, then you don't have to invest the money immediately. Retaining the $2,000 in cash can provide you with options and the ability to pounce on a future opportunity when it arises.
