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Is Investing In The Boeing Company A Wise Decision?

The Federal Reserve lowered the discount rate by half a percentage point on August 17, 2007. This is the rate it charges to commercial banks for loans, in response to the sub-prime crisis. However this also tends to reduce the commercial bank interest rate. The premium market rate in 2003 was 1% and continuously grew to 4.25% in late 2006. Now the rate has dipped down to 3.5%. If the Federal Reserve decides to cut the discount rate further, the interest rate may be on another roller coaster ride. So leaving your money in the bank is definitely not wise a decision.
The return on the stock market can be much larger, even though the risk is much higher. Even after the stock market boom in the late 90’s, the Dow Jones dropped from 12K to 7K from 2001 to 2003 respectively. It only took 5 years to get to 14K, the market almost doubled in 5 years, while the average rate of return was almost 15%. If you have a long term investment, your will most likely gain a higher return on it, than on bank interest or a Federal Treasure Bill.
The problem for most investors is how to select a company; there are literally thousands of corporations to choose from in the stock market. The main goal of investors in the stock market is to make money. How can they be sure they have selected a company with highest return? No one can be sure which stock will have the best return. Sometimes they are lucky, but most of the time it is smart investing that made them money. If they select mature corporation it would be a safer choice; although the rate of return may not be extremely high, the risk would be fairly low. If they choose a growing company the rate of return may be high, but the risk is also greater. This may be too tough for most investors to swallow, especially new ones. If they are diversified in many different companies, a riskier company may not hurt their overall portfolio.
The Boeing Company (stock symbol BA) was founded by William Edward Boeing; he was born in 1881 in Detroit,...