I want to invest $10K -- best way to do this?
I've got $10k sitting in the bank doing nothing in addition to my emergency funds.
Where should I put this? I won't need access to it really, but would like access just in case a large-scale emergency happens. I don't want to have to monitor it on a day-to-day basis -- so my understanding is that ETF or mutual fund would be the best course of action, though I have heard ETF is better for larger investment ($100K+) and mutual funds for smaller (like mine).
Thoughts? Thanks.
Put $10k into TILDX just a few months ago. I think its a solid fund w/ good management track record
Just buy a few large cap, blue chip, high dividend-paying stocks. You don't have to watch them all the time, and you won't pay unnecessary management fees.
at OP, I can assume if you are asking what to do with 10k that probably means you don't know what to do with it correct? If that is the case just do what @BTbanker said and invest in some blue chip stocks through the lowest fee online broker and check it every month or so. Or go long the gold miners
Leverage time decay: Short FAZ and FAS, close the position after one year. You can thank me for your market neutral double digit returns.
Can you even borrow those shares to short? What's the borrow cost?
Shorting those ETFs should be non-issue for a 10k account, however such a strategy is obviously only applicable to retail traders. Not sure about the borrowing costs, but I'd imagine it would be insignificant.
Perhaps they will now that I have put it up on an online forum. Alternatively, if the ETF authorized market participant just rebalances the ETF more frequently this 'arbitrage' will cease to exist although in such a scenario you would obviously just break even assuming no transactions costs etc.
Right now, just go for yield. Look at a high-yield fund. If you look at the spreads in the high yield market, it implies that US corporate companies that issue high yield have an 8% chance of defaulting. But, if you observe what has happened the LTM, it is more like 3%.
Then again, there are the management fees and transaction costs associated with ETFs. You can also just go for high-yield, blue chip companies like others have stated.
SDY.
Honestly, just buy a balanced mutual fund or diversify across a number of very low cost index mutual funds (Fidelity or Vanguard, depending on where you have your account). Buying individual stocks is crazy for $10k. Assuming you bought 20 stocks (which would still be considered very low to be considered diversified) and you had a $10 commission rate, that's 2% of your initial investment. If you wanted to be diversified across geographies and market caps, let's say you needed 20 stocks in each of US large and small cap and International and emerging markets, you are now talking about 80 stocks (still laughably low to be diversified across all equities globally) and it will cost you 8% of your initial investment. Then, you still need to reinvest dividends. Don't listen to hot stock tips...inevitably, they are shit. If there was real insight, they wouldn't be sharing it with you for free.
AGNC
Interesting advice.
Now how would you invest $250,000?
Invest in my macro hedge fund. I promise a minimum 25% return of funds with in one year.
So you're just buying japanese equities
You missed a keyword there.
put 2% into oom money puts...ull bleed and reduce returns but if shit hits the fan it will protect your losses.
So the point is to slowly loose money? That makes tons of sense.
The returns from the etfs will be enough to generate net returns, it's just that the options can provide protection in extreme cases if they happen (what happens if qe stops for example..who knows)
Just buy gold bullion imho. In the words of House Stark: "Inflation is coming."
Where to invest $10,000 now? (Originally Posted: 10/19/2016)
Chanced upon this article at Bloomberg and thought it was rather interesting.
The article share tips from top investment advisors on where to invest $10,000 now.
Among the 4 investors profiled, Francis Kinniry of Vanguard believes in rebalancing his portfolio, sinking more money into the assets which are not performing that well.
While Rob Arnott of Research Affiliates believe in concentrating and investing in Europe.
How about you? Where will you invest $10,000 in?
Well....at this very point in time I'd need $12k. I'd invest it in my personal debt reduction strategy (have about $12k left on my student loans). Would be nice to have that $350 a month off my personal cfs. (and I could easily make this happen if it weren't for my ongoing 401k and taxable allocations I make every month....)
but that isn't the point of your question.
If I had $10k to sink in the market today, I'd probably look more to what the Vanguard guy mentions.....its always hard to sell your winners, and if you can rebalance without doing so....more power to you.
Cuba.
Why Cuba?
There is a lot of noise around when the end of the current business cycle is going to happen. I've read all kinds of crap from guys way smarter then me having totally different view points. The majority of the materials I've been going over suggest a more bearish outlook in the near term. I would suggest putting it in as many pockets as possible. The gambler in me wants to look at WFC and DB. Especially DB. Good god. It can't go much lower and if push came to shove I don't think it would be allowed to fail... but I'm not very well read on their problems. Also, AVGO and ALLE are equities I've seen more and more and have mostly buy ratings.
Call options on Deutsche?
Cash wait for crash
reallocated my 401k to 95% cash last week ... hope I look smart
put it all on black
That's what Harembe did. Look at him now. He's fucking famous. Excellent idea.
Foreign equities.
When Campbell's Soup is trading at a higher valuation / multiple than Google - you know we are nowhere near the top of the market.
I'm a real estate guy but I like to follow the markets. The following is a bit of rambling but I'm curious about everyone's opinion. This seemed like a somewhat relevant thread to make this post.
At this time I have absolutely no idea what is a 'safe' long-term investment the way index funds have been over the last 30 years. I'm under the impression that the market, as a whole, is overvalued due to artificially low rates. In the event rates rise it seems inevitable there will be at least some deflation of the capital markets. Putting money in an overvalued market doesn't seem like a smart idea regardless of the investment timeframe. The only things that seem to make some sense to invest in are floating rate or corporate bond funds.
Maybe I'm way off base. What say the WSO universe?
DIS, CVS, and other high quality businesses trading below S&P multiples. If you do a very very simple DCF, you can see the current prices imply 2-3% FCF growth (over the near and long term) with a 7% discount rate on some equities like these. I'll take a high quality company, with good management and a moat, trading at 15x earnings while growing EPS at mid to high single digits and a 2% dividend yield in this environment any day. May not be higher a year from now, but will almost for sure be decades from now when I'm trying to retire.
Diversified global index funds covering developed equities, emerging markets, global small caps and global property.
Well for me I see two clear options, invest in Chinese smartphone companies, especially Xiaomi and OnePlus And also Huawei, that's some safe investment with Big ROI. you want to play danger games? Invest in DB and You'll get some return if it survived.
Put it all on Manchester United. Ridiculously undervalued , and Pauly P & Zlatan will bring you the $$$
I had the same situation about a year and some change ago. I divided it up 4 ways. 2500/poker bankroll 2500/stocks 2500/sourcing wholesale 2500/education in my self
in essence highrisk/risk/some risk/ no risk.
That's not really allot of money so I would suggest taking some big shots early. It also depends what type of time you have on your hands. I am just a student with limited time so you can manage. You have to get creative and don't rush it
I was given $10,000 to invest and have a couple of questions. (Originally Posted: 03/01/2017)
I was given $10,000 by a very well off family member. I am a first year student in Finance and love investing in stocks. I know a decent amount about the markets and how stocks work, and am currently returning around 75% on my own account with 3 holdings. He knows this knows how well I'm doing and thinks of this as a good opportunity for me to gain experience. He would not even be phased if i lost most of it so the whole feuding family member thing isn't a possibility. He just wants me to be able to have a little more leverage and gain the experience for my career.
So my question is... Where do I start? I trade on the TSX, and am thinking of investing into Penn West, Urthecast to start. I believe I will put about 10-20% into each stock that I buy, and always keep around 30-50% in cash. Are their any tips on how to manage the money? I like high risk and would like to have some high reward. Obviously I know higher risk means I could take a hit, but thats part of the game and I would definitely learn from my mistakes.
Why do you need an extra 10k if you keep 50% in cash? Would it not be better to not take his money and instead be fully invested?
if you're a student asking advice on where to invest on a forum populated by other students looking for advice, you don't know as much as you think you know.
if I got $10k as a freshman, I'd be swimming in pink tacos
Put it in a few ETFs and forget about it. 10k isn't enough to really take too big of a position in anything.
What would you do with $10,000 (Originally Posted: 05/02/2011)
I am a female about to go into investment banking. I come from a very modest background, and I have $10,000 saved from working through high school and college. I had to spend my internship salary on tuition, or else I would have saved that as well.
My question is this: I don't have a brokerage account yet, and I'm a little nervous about having all of my money in cash, considering the dollar's behavior.
Given that $10,000 isn't much at all, do you all think it would be worth it to try to "diversify"? Honestly, I was thinking of just buying some physical gold until I can save enough after I start my job. Or is that unsound?
I may be worrying for nothing, but I'm a little concerned that, if anything happens, everything I have is in cash.
I bought physical oil
Well if you're concerned about such a catastrophic drop in the dollar that your cash experiences an appreciable decrease in purchasing power, you're also betting on a pretty substantial crash across the entire dollar denominated economy, so that means equities and bonds are out. So you can either take your cash overseas into some other currencies, or buy commodities. Thing is though, most commodity/currency vehicles are probably going to be a lot more volatile than the dollar over your time frame (about a year).
I honestly think you're probably fine in dollars (or equities) for that length of time. Think of it this way - if the bottom falls out of the dollar in such dramatic fashion, you're going to have a lot bigger problems than the $10,000 in your bank account.
If all of your expenses are in dollars, holding cash is not particularly risky, especially in the short run. If you're concerned about inflation, you can always move your money in to TIPS. $10,000 is not a significant amount to be investing, and I would say it will be better to have excess liquidity during your first year than to worry about getting a few thousand in excess returns.
If you do want to invest it, there are lots of reasonable options, though I'd avoid equities because you'll end up having to jump through a ton of compliance loopholes.
open an IRA and max out the contribution. put the rest in a personal equity account.
Do this to deduct $5,000 from your income, which you don't have to pay the tax on to the government. You qualify for this until you hit the $105,00 threshold.
Get mad long Ag/softs and blog about it nonstop. become the ag lady
buy a hilarious korean car kkkkk
The liquidity thing is something I've been considering as well. I'm going to be making ~65k next year (plus bonus, but consulting so won't be a huge bonus), and my company will match up to 6% of salary for 401k. I was going to also max out a Roth, but would I be better off keeping it as savings?
The money you contributed to a 401k plan is deducted from your income and is not taxed, but is taxed later at your ordinary income when you withdraw the distribution. For instant, you contribute $12,000 and make $60,000. Your taxable income is $48,000. The Limit for this is $16,500. You would do this to avoid being taxed at the next highest bracket at 28%.
With a Roth IRA it is tax free when you take out the distribution, so the interest is not taxed each year. if you are looking for short term liquidity just put it in a money-market account at the bank.
Pork Bellies
Get a decent savings account like Ally or GE Interest Plus (combo savings / checking w/ the best rate you'll get). $10k is definitely best kept as a liquid buffer. After that, get a Roth IRA not the traditional type suggested above.
Well, personally I'd have to do
http://www.youtube.com/embed/ylQ6U8xP9I4
If you already have IB lined up I would incorporate more risk into your summer investing considering your going to be making a healthy income once you start work. Now might be a good time to invest in a leveraged silver ETF (AGQ 2x), especially after the recent selloff and the public sentiment on the continued demise of the american dollar. Your young, invest aggressively. You have the most precious component - the time value of money is on your side sister.
Roth IRA.
You're welcome.
$10,000 investment opportunity idea? (Originally Posted: 01/12/2011)
I have about $10k to invest. I already have an equity portfolio ( with average returns), high yield savings for liquidity and a large p2p lending portfolio with nice monthly CF that I can reinvest or use depending on my needs. Looking to diversify further, but I'm not sure about fixed income or FX. Any alternative ideas??
Why not focus on energy, utes, or REITs? They all produce something you need and it's a nice hedge. That's what I would do. You can still get 5-6% yields from royalty trusts and oil companies, and as far as my accounting works, the risk for you on those investments is probably less than it is for the market until you're collecting more in dividends than you're spending on energy. Naturally you need to take a close look at the risks and everything else, but it probably bears more looking into.
*:Edited to add my standard couching on this. The strategy isn't for everyone but I think for an individual investor it's a little more conservative, net net, than the rest of the market is going to price it at- something like 50% of the country's wealth is held by people who probably collect a lot more in dividends than they pay out in rent and gasoline.
Precious metals and real estate are good areas to diversify, though I wouldn't put more than 15% of my total investment portfolio into these areas unless you are experienced trading or investing in these areas. If you're young you typically want 80% or more in equities.
Is a REIT the only way to invest in real estate with $10k?
Unless you can find a majority partner that you really, really trust. Frankly, investments where you have a minority interest and aren't publicly traded are stuff you have to be really careful with. It's basically a worthless sheet of paper unless you can sell it.
IlliniProgramer, how can you invest in metals and REITs to reduce transaction costs? Buy mutual funds that invest in REITs? What about energy? Never thought about this area before. Good insight guys!
Well, really depends on your situation. IMHO, if you've got $800+ to invest and you plan on holding for at least a number of months, the transaction costs on stocks aren't really that awful. $16 commission, 2% round-trip. Some of the full-service brokers will let you trade a basket of ETFs online commission-free; might also want to look into that.
But if you're a college student, why let somebody else invest your money for you and collect management fees on it? You want to get some practical experience as an investor and start making your mistakes- and figuring out your strategies early when you're playing around with $800 rather than $80,000. Why pay someone else to take that experience away from you? If you're trading only once or twice a month and investment management or trading is something you really want to get into, it's worth $8 for that trade. You're getting $100 back worth of experience.
guest007 - quick question...I've been thinking of investing a bit of money in p2p lending. How has the experience been for you? returns? defaults? If you don't mind me asking which site do you use (prosper? lending club?)
@ Harvard grad, I use Lending Club and the experience has been solid thus far
real estate...
Harvardgrad& Ben, I've been using Lending club for 2 years, I don't know about prosper,but LC experience has been great so far! With active mgt I am averaging 10.5%, but remember that you're "frozen" for at least 36/60 months depending on the notes you decide to invest. What I like about LC is their secondary market where I can trade my notes.
On the bad note, look through their financial statement and let me know what you think. They are a startup so they loose money on their operations. I am just worried about their solvency in the long term, but considering their size and the amount of $ flowing through, looks like they're heading in a good direction. Question remains, who takes over the execution of notes in case LC goes down...
Consider MLPs as a hedge/energy play. They're a weird hybrid model of a revenue bond and an equity ownership of a firm.
They've really got a lot in common with a REIT. It's basically a REIT that owns a pipeline, refinery, forest, oil field, high seas shipping business, or coal mine. They generally distribute most of their income and the kicker is that the income is deferred until you sell the asset. (Make sure you sell before your last year of school so you can enjoy the 10% tax rate instead of 25%).
But they're really an income investment. Great for grandpas and orphans, not necessarily quite so good for a college student with all of his expenses already covered.
50 cent turned his 10k signing bonus for his first record deal into 100k. Long story short, sling some rock.
id say look into muni bonds, pimco and others have discussed how its become an oversold situation. could present opportunities
I have $10,000 (Originally Posted: 07/05/2011)
My timeframe is 3-6 mos and I'm looking for about %10 allocation (10 ideas) in different market sectors. So far I have...
Teva (Pharm.) - they sell Adherol and are trading at an attractive PE ratio relative to other Pharm. companies
Google (Tech.) - relatively expensive but I think Google+, their new social Network should give the stock a nice pop that hasn't been priced in yet. I also don't see how they could falter given the amount of cash their currently sitting on.
Transocean (Commodity) - oil is a smart play and recent news is again causing Transocean to trade at an attractive price relative to other deep water drillers.
Please let me know what you guys think about where I should put my money! SB's for anything I end up using.
Teva is hot...just bought some shares.
I bought Transocean in June for $50 hoping to sell at $100, I get out at $84. In the last weeks the stock jumped up $5, you can buy it now or wait until the next crunch. When we have crude oil prices between $120 and $140 RIG will be situated between $100 and $140.
Don't you feel special. 10k is jack squat in this day and age, not really enough to make any substantial gain. I would save it until you have at least 100k then start investing
Someone having a bad day? Thanks for the unsolicited advice.
@RexAlpha - agreed, distinct possibility of a new term drop but I think the potential long term payoff as you mentioned is worth the risk now.
I think you need to look at mid caps, google is fast readjusting this week buy ops are closing. I'd add IRBT to your list but for a horizon of only 6 months, you need to get technical, you're not exactly value investing.
I'm interested in other thoughts on this.
Currently re balancing my portfolio with the same amount of capital. If this helps my current looks like this Apple Teva Travel Zoo NSC RailRoad Cisco Wells Fargo Zalicus
Apple - seems like they don't have anywhere to go with new products/market saturation, plus their hitting new highs as we speak. Travel Zoo - doesn't seem to have a great competitive advantage, defitinitely not a sure thing. NSC Railroad - I like the product but the price is a little unnattractive. Cisco - strong product line and a great price, definitely considering buying this instead of google for my tech. sector allocation. Wells Fargo - also seems to be doing fairly well recently as compared to other financial institutions, another good call. Zalicus - looks alright, but the prospects for Teva seem better and I don't want to over allocate to Pharma
What do you think?
@jktecon - definitely looking for near term plays which includes anything technical, although i'm not a big fan of technical analysis. IRBT is definitely a good prospect, any specific reason? Any other reccomendations?
VXX, would serve as a good hedge over the next few months, Vix is way too low given how many potential catalysts there are out there.
If you have access to the futures, I would buy the August and short the January, at 5, that spread is way too big...
keep ur 10k in cash
Ever heard of Dan Zanger. He turned $11k into $42 million within 18 months.
How can you honestly pretend as if someone can't make money with 10k cash?? Not everyone is a daytrading junkie. IRBT has support backed by fundementals with the government deals they have been getting very unlikely to underperform sp500. Another big deal could appear within your 6 month window and allow you to feel ok if you really need to take it out, or another conference call...
I like ALXA CLSN, and GS December CAlls.. Yes I like to gamble.
take a bet on nokia
prologis - industrial real estate company. do some due diligence on it.
Timothy Sykes 12000 dollars bar mitzvah money into 1.65 million in three years... Then went on to start a hedge fund.
then went on to blow up
Timothy Sykes 12000 dollars bar mitzvah money into 1.65 million in three years... Then went on to start a hedge fund.
Compared to Dan Zanger, nothing special
Dan Zanger turned ist 11k into $18 million in 1 year
I like RIG and TEVA, I don't like GOOG personally though
give me the 10k and i will give u 20k at the end of the year
take a look at CLF...but dont quote me on it
@go4it - I like the GS calls, I was already thinking of opening a few
@hungryman1 - CLF looks good as well but the price is already pretty steep, any particular reason you think it's positioned for a further price move.
I'm also curious what everyone thinks about Spirit Aero (SPR), they manufacture airplane parts and based on the market cycle i'm looking for a solid industrial equity. That and the bank I intern for just moved the upgraded the 12 mo price target to $30/share... any thoughts??
So far i'm thinking: RIG, TEVA, GOOG (option), GS (option), SPR?, CLF?, IRBT
Thanks for the great ideas, keep em' coming.
this might be illegal
@oldmansacks - didn't really think about it, could you edit your post to take out the price target? Good catch, I don't think i'll be investigated but better safe than sorry.
Edit: it won't let me edit my previous post, anyone know how I can do that?
Oh well, not the exact price target anyway...I think we might walk away from this one.
Trade on a 4:1 margin so you've got $40K buying power.
You can't go wrong with the railroads. CSX, NSC, KSU, UNP, CNI.
Stay away from Annacot steel.
Put it all in Teldar Paper. And some Bluestar Airlines.
Why are you allocating your funds across 10 stocks? With $10,000 you should be in maximum 2-3 names. Choose the best 2 stocks and invest $5,000 in each, why have 10 sub-par companies?
If you want some good opportunities that are trading cheap (EV/EBITDA) check out LOJN & IGOI.
@YourWorstEnemy - youre a dick.. the kid is an intern, everyone starts off trading 'peanuts'. He, like myself, needs to get a little experience and a little more income before he can start trading 'at least 100k' you pompous asshole. Oh, you invest more money than a college student? That's fucking awesome buddy. Since you're so experience maybe you should give him the advice he's looking for instead of ridiculing his funds.
He still made cash idk his whole story but he claims he just wanted to start giving info to the public. Still commendable that someone so young could even raise the funds to start a hedge fund.
10 hands of blackjack
For something different, I'd recommend Kite Realty Group (KRG), a strong REIT that 's worth investing in.
They lease, as well as develop and re-develop commercial properties across states and locations that management is familiar with, which is a plus. The stock has taken quite a beating in '08, but I believe it will return to eventually trade in the $20 range. The development side of their business has obviously slowed, but the leasing side is doing excellent. They rent to places like Home Depot, Bed Bath & Beyond, Dicks, Petsmart, etc, so mainly shopping centers. Their leasing base is very diversified with the biggest tenant making up only 3.2% of their annual revenue and their properties are 92.2% leased out.
Here are a couple stats about the dividend also if you stay with the stock long enough to receive any payouts. The stock should do well even without the payments since you are looking more into the short term.
LTM FFO Payout Ratio (%): 55.81 Current Dividend Yield (%): 4.80
Funds from operations with this pick looks very healthy, and they seem to know what they're doing. As a disclosure I invested in both their common stock and their preferred stock, but I am not affiliated with them or anything like that.
Check out their website at http://www.kiterealtygroup.com/
I'd also recommend Research in Motion RIMM as a speculative investment. They are down 50% YTD (I believe they've bottomed) and the company is solid financially. Many say that Apple and the Android phones are going to kill RIM's BlackBerry market share, but they are still expanding their market share very well in emerging markets and are very solid financially. They are also rolling out new phones late this summer which will bring them up on the same playing field as the iPhone and Android phones. The company is not only updating their phones, but also their e-mail pushing service, and perhaps most importantly, their app development tools. I would say more like "Research in Transition" instead of Research in Motion. Yes, the company has had alot of problems, and yes they have a long road ahead of them, but I foresee a pretty nice bump in this stock later in the summer if the new phones do well worldwide. Investing in this company isn't for the faint of heart and I'm not sure given your timeframe I'd be all that great of a pick so use caution on this one and if you buy make sure you set a stop sell good till canceled order on it.
Don't forget to make sure your investment fits in with the rest of your portfolio buddy
I'd stay away from CSCO, the stock's real return since the tech boom is effectively negative. The company has been shedding non-core divisions and assets, so let's see if they've gotten their act together.
Just opened my positions and gave SBs to those whose ideas I used as promised...
GS Spread, Bought Jan135/Sold Jan 155 - relatively cheap RIG - long oil, deep water drilling IRBT - good idea, covers a sector I wanted to tap TEVA - relatively cheap P/E, adderall sold out nationwide, especially at my school... GOOG - long Google+, options were out of my price range SPR - untapped sector VXX - hedge on vol.
Leaving roughly 2.5/10K in cash for lack of good ideas/questionable current market conditions
"diversification is a protection against ignorance" do your homework and invest in 2 3 stocks like wikileaks said.
Like I mentioned I'm doing this to get my feet wet... I diversify because I consider myself relatively ignorant - as most should.
eriginal- learn all you can with your $10k...if you can't manage $10k, how will you know how how to manage $100k? Keep pushing forward, don't listen to naysayers, good luck!!
HI. THRIFTY ILLINIPROGRAMMER HERE. I RECOMMEND SPENDING $10K ON A HOUSE. I AM LOOKING AT MOVING UPSTATE AND COMMUTING IN FROM THIS $8K HOME. IF I WANTED TO SPEND AN EXTRA $2K, IT WOULD EITHER BE TO FIX THE LEAKY ROOF AND PUT A FEW WINDOWS IN OR MORE LIKELY JUST BUY YELLOWTAIL SHIRAZ.
Now to seriously answer your question, it's hard to go wrong sniping opportunities in European-based companies with global markets. Think sectors like consumer staples, energy, perhaps manufacturing, and then look for well-financed companies that have lost 15-20% in the Euro panic for no good reason.
. . .
Still confused as to why stating the amount of cash you have to invest is relevant here; whether it is $1K, $10K, or $100K, it is an investable amount that is too small for less liquid investments.
That vxx hedge worked out brilliant today
@IlliniProgrammer - I like the idea of looking for euro market plays, even more so for plays that are based in the more solvent euro zone countries - any ideas?? Also, I mentioned the 10K amount in the subject line mainly as an attention grabber, but it would have come up anyway.
@JTKecon - very excited about how well it offset my daily losses, literally dollar for dollar.
>I like the idea of looking for euro market plays, even more so for plays that are based in the more solvent euro zone countries - any ideas??
My firm's policy prevents me from suggesting specific securities to people I meet in online forums due to various legal issues. Wish I could help you with specific recommendations- are you coming to the drinks on Thursday?
Honestly, I would not be afraid of the PIIGS, though. Are people in the US really going to stop drinking Irish beer because Ireland defaults on its bonds? It is not like the country is going to turn into Zaire overnight or foreign drinkers will suddenly realize that certain high-end beers have the consistency of flat coke and taste like badly burnt toast. :D
I think the place to look for the truly irrational discounts is in the PIIGS. Stay away from sovereign debt. Stay away from domestic pure-plays, but don't be afraid of companies in bad countries that depend on a (good) international market. A horrible domestic economy is actually great news for exporters, helping to hold costs down. It is just bad news for utilities, real estate companies, retailers, and workers. (Naturally, this assumes that law and order is maintained and taxes don't wind up getting more irrational than the prices these stocks are getting dumped at.)
>Also, I mentioned the 10K amount in the subject line mainly as an attention grabber, but it would have come up anyway.
I'm not calling you a troll, but it does kinda look trollish. :D Which is part of the reason I trolled you before answering your question. Which may also be the reason you got trolled by YWE.
I'll do a little of my own research and post some ideas for a euro play, possibly in PIIGS, although I can't see the floor yet and I'm still afraid of opening a position.
I agree it looked that way, and some trolling was expected, but I guarantee more people payed attention to this post because it was titled "I have $10,000" instead of "My portfolio."
do you want to buy a stock?
Where to put $10,000 (Originally Posted: 01/07/2014)
I've been lucky enough to come in contact with an extra $10,000 which is certainly not a lot of money but it's something nonetheless. I'm wondering where I should be putting the 10k in order for it to grow. I'm ideally looking into going to grad school and I'd love to grow my money and help offset the cost.
About me: I own a condo and have a 350k mortgage. I could always sink the 10k into a principal payment on my mortgage but I'm not sure. I have a 401k through my company but don't have an IRA.
What do you think is the best move? Equities? Bonds? Retirement account? Mortgage? Mutual Fund?
Would appreciate any ideas or tips and also specifically where (i.e.: what stock, fund, bond, etc) would be best.
How old are you? That'll make a big difference in allocation.
Most likely put into a Roth IRA over the next two years. Use one of Vanguards target retirement funds depending on your age.
Buy USD/EUR... leverage to the hilt.
Stocks are slightly overvalued and you have way more downside risk imo. You can't buy bonds b.c. interest rates may start increasing in late 2014, again bad risk/reward.
Also, OP: I believe you can withdraw from Roth IRA accounts penalty free for educational purposes for what it's worth.
Do not invest in Forex if you have no idea what you're doing. Easy way to lose money.
Gerber College Fund... you'll get safe, reliable growth
A hedge fund dedicated entirely to AAPL and probably not using any stop-losses.
Whats your interest rate on your mortgage, that should play a large factor
Echoing ct banker...paying off credit card debt first (or other similar high interest rate debt) is one of the best investments you can make first before thinking about investing.
Why risk your money in equities and bonds when you can get a guaranteed return of not paying x% on your debt.
If you are up to date on bills then I'd recommend an ETF, but depending on the interest rate on your mortgage, might consider paying down principle if you think the 4%-6% interest rate would be equal to or greater than what you expect to make from investing in another thing. Again, this all depends on a variety of factors such as if you plan to stay where you are living, when exactly youre going to grad school (and where!).
if mortgage rate is low, don't pay that down.
if you don't have an emergency fund (3 months salary if you're single/no family, 6 months if family), put it towards that.
otherwise if you're saving for grad school and you can't afford to lose this money, put it in short term bonds, high quality though, HY spreads are tighter than a virgin on a deserted island.
if you can afford to lose this money and are looking to gamble, pick 10 stocks, equal weight, and then walk away. if you don't know much about investing this is the best way to learn. to get ideas, you can look at 13F filings from hedge fund managers or any number of other methods, just don't concentrate in one corner of the market (not all new tech stocks, financials, stuff like that).
Load up on SPY and AMZN puts that expire SEP 20 with 190 strike (SPY) and 300 strike (AMZN) and thank me later after you make 100-300%. Also maybe kick me back some profits as I am broke and would like to be in the market right now.
Ah, the WSO is prescient, as always
Buy gold (bullion not stocks). Better than a diversified basket of equities in almost every case.
In a stripper's ass.
i've lost so much in there
Vix minis
On a serious note I would park it in preferred stock with a dividend over 5%
sell Nasdaq and s&p !!
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