If you had $5000 bucks what would be the one stock?
Or to diversify, what 3 stocks will make the most money?
I’m ready to buy into the dip of the market. I believe there are some quality stocks near their bottoms.
How "bout EMC? It’s at a 52-week low. Well, it’s still a boring stock:(
Here’s mine:
I like this speculative stock. I bought Resmed(RMD)(now@36.22) and I just might buy more if it goes down. They make machines to help diagnose sleeping problems like apnea. Increasing amounts of obese people have this sleep problem. This company makes it possible to do sleep studies in your own home instead of the hospital. It needs support/passed from medical big wigs. The insurance companies will want this as it’s a lot cheaper.
I’m reluctant to put money into ANYTHING in this economic environment. I’d be afraid to call a bottom at this point. I don’t see anything which indicates things are getting better.
…that being said, the biomedical industry is relatively recession proof.
Why not funds? Sure, the return may be lower, but so is the risk. Look for four- or five-star funds as rated by Morningstar, and you can achieve returns of 20-30% in as little as a year. Some funds have even yielded 40+%…
Yup, funds. I got tanked on my Intel stock in 2000. It was up to almost 4x its original value, but in the end I got out and basically broke even. Now it’s in mutual funds and has grown, though it’s been suffering these last few months…
Invest in people by giving them loans at Prosper.com
Right now I have $850 making 20% there is the risk of someone defaulting on the loan, but if diversify you can set yourself up to cover your loses fairly well, just like with any type of actual stock. Just do your research on which loans you fund.
If you do decide to sign up with the site pm me your email address and I’ll send you a referral email and we each get $25
Got to buy when people are scared. If everybody thought that the economy was getting better the market would shoot up too fast and you might miss this buying opportunity.
sounds diversified and less risky. I never have but it’s good advice.
If I were to guess, I would bet the US market is going to continue to go down.
Diversifying is one key, and that really means diversifying across different asset classes and markets. Go global. Go stocks, commodities, and bonds.
My best pick almost a year ago was USO. MOO, RIO, and EWZ are my next best picks. My worst are BRK.B and PG. I still think these are all good choices to hold.
I have a financial book that I have yet to read that says on the back “Don’t diversify.” I’ve heard a little about the strategy given, which is basically to analyze individual good stocks and know your buy price to get it at a good discount. The diversification thing as I understand it means to not buy index and mutual funds as you end up buying the bad stocks within them which weighs down the fund. I would assume it’s still good to diversify but do it by choosing many good individual funds in many different markets.
Before suggesting what you should put your money into, you need to know why you’re going to be investing. Is this something that you’re doing on the side? Or planning for retirement? Short to medium term savings (perhaps a dependants education fund)? There’s many different factors (ie. your risk factor) that should influence the way you invest your money.
Mutual funds are the ‘safest’ and easiest way to watch your money grow. They don’t offer the excitement of playing the market, but if you’re looking at a nice, solid long term investment with little risk involved they’re definitely the place to go.
edit:
but alas, after re-reading your post, you do seem to know what you’re talking about.
Maestro…where do you get your figures of 20-30% and up to 40% return on your investment? Banks don’t even get a 40% return…
These aren’t bonds, they’re mutual funds. I got the figures from Morningstar’s list of “top performers”. One of my funds was up almost 20% in the first year, but that all disappeared with the recent market dip. I’m still holding it, however, as I’m one of those “long termers”.
As for diversification, I’ve kept 50% of my portfolio in cash. I just don’t like what the market is doing lately… I’m even wondering if I should convert my cash from USD…
Cash is designed to always go down in buying power, so any currency is a bad choice to hold long term. You should only hold it if you have a need for stability in a particular currency for expenses that are coming up soon. Cash is only good if you have it in your hands as it will become more valuable on the street during massive bank runs.
Stocks, bonds, futures, etc. Something has to be better now than keeping cash.
True, but coping with inflation and the devaluation of the dollar by investing in an something which loses money is a bad strategy.
20%+ is a pretty unusual gain for a fund. To have that kind of gain, it must involve some sort of risk that has the potential to move double digits in the other direction as well.
no profit this year or next:( . Looks better for 2010. Hard to believe it could go lower, but doesn’t look like it going up anytime soon. If you held this stock for 2 years…ouch. I free you to sell it, so it won’t torment you any longer. .
EMC up 13.72% since I mentioned it on the forum:D . also they had good earnings today.
Funds are good for most people. Stocks need to be watched. When you own a stock you need to know if the company is still growing. You need to watch the quarterly reports. Even the great stocks need an eye on them. Intel grew for a lot of years but reached max saturation. Intel will always make a lot of money. but can it keep making more money than it did the year before? That makes a stock go up.
There is always something to buy. Think the market is going down? Buy “DOG”- It makes money when the market goes down by shorting the Dow stocks.
Has oil peaked? Buy “DUG” it’s a short against oil stocks. DUG is recommended currently as a top ETF.
I like ETFs for other countries… like Gilby’s EWZ; it’s like a mutual fund of Brazil. Sweet one.
Big growth in the world will be how to save the earth. Solar, Batteries, etc
So if someone gave you $5000 bucks and told you to invest in the stock market. What would you buy?
Nah. The biggest failures in investing come from psychological trading… usually selling because of a loss. Instead one should not look back on a stock but instead look at the stock today and determine if it’s worth holding it in the future. It may even be good to add to the position and buy it while it’s low.
As long as the US keeps threatening Iran, oil is going to remain high. I don’t think shorting oil would be a good thing right now unless you think there is going to be a sudden change of position by Bush, Obama, and McCain.
I said I was an AMD fan, because I have been assembling my own computer from parts, the last 10 years.
I don’t dislike Intel, it’s just that as a low end parts buyer, I often got a better deal IMHO going AMD.
Intel has a lock on < 45 possess fabs, in the sense that they are a year ahead of AMD, at least, in this “Mores law curve”, as I understand it.
Because I see these low power consumption, high performance 8 core 32 nm process cpus taking over the world market in a couple of years for desk top processors, this will be a market serviced by Intel exclusively.
The same tiny process is being used to make 1 $ cpus to go in all types of gizmos.
I don’t have the extra $ to buy Intel stock, but I predict that Intel will rake in cash at a massive rate soon. They have a near monopoly on parts that are in greatly increasing demand. AMD is their only real competitor, but can’t match Intel’s RND even 10 to 1.
Sadly, this race is over. But not everyone on wall street knows this.
The race is over? You never know. While it will be hard to dethrone Intel as the market leader, AMD still has a fighting chance. A few years ago, AMD had the best server processors out there, then eventually Intel launched new products and beat them, for now. AMD could be soon launching new products that beats Intel. It’s a constant back and forth battle between the two, with Intel having the advantage of it’s long term reputation in the market. AMD has the advantage of being a smaller company that isn’t as bloated as Intel, so their R&D is likely much more efficient.
Hmmm , Intel been dead for so long. It was 20 bucks 10 years ago. If what you say is true maybe they are do for a rally. INTC has had a nice run since it bounced (at 20) last month when their earnings came out.(22.80 as of today)…
Resmed up >15% since I first recommend it. I wouldn’t buy it right now, in fact I’m thinking of taking profits. I like to hold a stock for at least a year. Cheaper taxes for long term gains. Maybe I sell one third of it and buy it back on the dip.
.
