T Nation

Investment Suggestions?


#1

Say i wanted to throw 10k around, whats good right now?


#2

[quote]LiveFromThe781 wrote:
Say i wanted to throw 10k around, whats good right now?[/quote]

As ive said before, right now a bank is your safest bet. If you want a bit of risk, there is a real estate ETF i actually bought into last friday ( URE ). Its already gone up around 25% for me but if you believe the real estate market has hit a bottom, its a very smart play.


#3

the holymac MMF fund


#4

[quote]LiveFromThe781 wrote:
Say i wanted to throw 10k around, whats good right now?[/quote]

To give you some decent advice please answer the following questions.

1.) What is your risk tolerance?

2.) What is your age?

3.) Are you going to be needing this money anytime soon?

Let me know the answers and I’ll be more than happy to recommend a few options.


#5

[quote]gsxtacy wrote:
LiveFromThe781 wrote:
Say i wanted to throw 10k around, whats good right now?

As ive said before, right now a bank is your safest bet. If you want a bit of risk, there is a real estate ETF i actually bought into last friday ( URE ). Its already gone up around 25% for me but if you believe the real estate market has hit a bottom, its a very smart play.

[/quote]

25% return in less than a week sounds more like volatility than anything. I personally would stay away from the real estate market. Until our unemployment levels go down, we’ll still be facing plenty of defaults.

Gold seems to be a safe bet. Basically, any hard asset will appreciate in the presence of a weak dollar. I’d also take a look at tech stocks, which seem to be more recession-proof than other industries. It’ll be interesting to see how Google’s new OS turns out, but that won’t be for a few years. Also, Microsoft is providing their Office package online for free to compete with Google docs. We’ll see whether that was a smart move or a dumb move.


#6

Be careful Live, whatever you decide to do just think it through. Not trying to deter you, but I got tooled in the market, don’t want anyone else to take a hit like that.


#7

[quote]LiveFromThe781 wrote:
Say i wanted to throw 10k around, whats good right now?[/quote]

If you have 10k to throw…start a biz


#8

live you’re about the same age as me right?

for what it’s worth, all the extra bank i’ve gotten from uncle sam has gone into mutual funds. i really think that’s the way to go.

grantd i’m not making 25% returns, but i’m also not a poor bitch.


#9

i have around 10k actually less, but like i still at home and i dont even have a car.

i just was wondering some ways i could get a cash flow going on to generate new funds which would basically be all for spending. that way as long as i have that 10k put away in something and im getting returns i can just live off that and my other job for the time being and maybe look at getting an apartment.


#10

Taking advice from people on here about what stocks to buy is a crap shoot at best. If you’re not going to put in some serious time to looking at them for yourself, don’t bother. Put your money in a CD or a cheap index fund.


#11

[quote]HolyMacaroni wrote:
live you’re about the same age as me right?

for what it’s worth, all the extra bank i’ve gotten from uncle sam has gone into mutual funds. i really think that’s the way to go.

grantd i’m not making 25% returns, but i’m also not a poor bitch.[/quote]

Mutual funds are definately not the way to go. Mutual funds are usually 95% made up of stocks, so your playing the market anyway and focusing on one specific sector. Emerging markets, OIl, Minerals etc. Safest bets are T-bills and keeping your money ina solid bank.

As far as stocks go, im not suggesting he listen to me by any means. Before someone buys a stock thye should dot heir own research. I have done a fair bit and it seems that the jobless rate will be lower then expected as well as a few things ive read regarding the real estate market such as:

#1. New home inventories are now at previous recession lows. This is not to say inventories of new homes can’t fall lower. But as inventories fall, so does the supply of new homes, which is generally bullish for prices. Looked at another way, the bulk of the oversupply of new homes has largely been worked off.

#2. Existing home inventories have also fallen sharply. Although they have not plunged as low as one might expect from looking at this chart, they have not only peaked, but they have fallen to an area that should find support

These are all positive signs that we have reached somewhat of a bottom in the real estate market. Granted this is my opinion and well see what happens. Im selling my shares today anyway and waiting for a pullback back to $3 per share before i re-enter.

Whoeevr suggested to start a business with 10k, you must have zero idea what it costs to start a business, much less a grasp of what exactly a recession entails. He will have issues getting loans for day to day operations not to mention people are not spending cash right now, terrible time to start a company.


#12

[quote]younggully wrote:
LiveFromThe781 wrote:
Say i wanted to throw 10k around, whats good right now?

If you have 10k to throw…start a biz[/quote]

Agree.

You’ll learn a lot, even if you end up not succeeding the first time round.


#13

[quote]LiveFromThe781 wrote:
Say i wanted to throw 10k around, whats good right now?[/quote]

A piss low bank CD or your mattress. The people in the stock market pick their teeth with your 10k and don’t care that it’s all you have.


#14

[quote]gsxtacy wrote:
Mutual funds are definately not the way to go. Mutual funds are usually 95% made up of stocks, so your playing the market anyway and focusing on one specific sector. Emerging markets, OIl, Minerals etc. Safest bets are T-bills and keeping your money ina solid bank.[/quote]

Only issue is that T-bill rates are so low right now that he won’t be making much interest. Safe, yes, but with his investment goals (“i just was wondering some ways i could get a cash flow going on to generate new funds which would basically be all for spending”), it wouldn’t cut it.

It really depends on how involved you want to get. Mutual funds, CDs, T-bills, municipal bonds, etc. are all good if you just want to throw your money down and forget about it. However, they also have much lower returns.


#15

[quote]gsxtacy wrote:
Whoeevr suggested to start a business with 10k, you must have zero idea what it costs to start a business, much less a grasp of what exactly a recession entails. He will have issues getting loans for day to day operations not to mention people are not spending cash right now, terrible time to start a company.

[/quote]

Its not such a bad idea that he should be discouraged. Highly unlikely it would be successful even if the conditions were right but the experience could make it worth it.

Can’t you buy a house in the US for 10k?


#16

[quote]Big_Dave wrote:
LiveFromThe781 wrote:
Say i wanted to throw 10k around, whats good right now?

To give you some decent advice please answer the following questions.

1.) What is your risk tolerance?

2.) What is your age?

3.) Are you going to be needing this money anytime soon?

Let me know the answers and I’ll be more than happy to recommend a few options.[/quote]

This. I know you are young from your profile but point one and especially point three are essential factors to qualifying any advice on how you should invest.


#17

Have you checked into the bond market? It’s somewhat safer than the stock market. Government bonds are a guaranteed way to make some money. They will always pay you back or if they need to inject more money in the economy, they’ll buy your bond from you.


#18

[quote]hardgnr wrote:
Can’t you buy a house in the US for 10k?[/quote]

Not exactly… http://www.trulia.com/home_prices/


#19

I would say buy a franchise, there is some that will earn your money back in half a year. Go get a magazine ‘Entrepreneur: Start Up’ and look in the magazine, they have tons of franchises (advertisements/articles/listings) to look at that are quality.

There is a few things you have to look for:

  1. Why the business is doing franchises, is it because they can not expand any other way. If that is the case probably not a good business plan of theirs.

  2. Make sure they have national advertising and advertising in your area, T.V. and Radio as well as internet as it’s becoming big.

  3. Make sure they have a bank roll and they are not just looking to take your money and run with it.

Some franchisers will let you buy a franchise with no down payment and just pay it off with larger payments at first until your balance is zero.

And if you decided to go with one of the more expensive ones (50-60K) the banks will love you if you have the business plan that they can tell works and 5-10,000 bucks to put with their 45-55K loan. Plus you usually have three years to pay those suckers off so you’ll be good to go and head over heels in ass and cash.


#20

Invest in yourself in some form or another.

If you can find a mutual fund or similar that gives you pays 5% a month and stay in the folks house you may do alright.