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Posted: 5/16/2003 10:17:18 AM EDT
OK I have $10,000 to invest.  I don't knwo where though.  Here are my thoughts:

1. Savings Account - No return

2. CD's and Money Markets - Hardly any return

3. Stock Market - I still think it will go down further. But I could be wrong.....Maybe.

US economy in shambles, current account deficits of huge proportions, budget deficits of huge proportions, dollar falling.  I think they will start the printing presses and we will have some serious inflation in a few years.  That is about the only way to get out of this debt - devalue the currency.  Otherwise, we will see interest rates creep up to keep the dollar from plummeting into hell as world investors dump the no return dollar for Euros, Yen - anything other than the dollar.  If interest rates creep up, then there goes any chance of recovery.  Also, rising debt forces .gov to compete with the market for money to turnover the debt - pressuring interest rates up.  Devaluation might be the only way out.

4. With this in mind.  Perhaps GOLD is a good bet?  It moves inversely to the dollar usually and holds its value in inflationary times.

THoughts?  Any other investment thoughts out there?
Link Posted: 5/16/2003 10:19:31 AM EDT
[#1]
I'd spend some of it on booze, some of it on hookers, some of it gambling, and I'd squander the rest.
Link Posted: 5/16/2003 10:19:38 AM EDT
[#2]
I need an investor for an organic produce operation. The industry grows by 20% a year. Multi billion dollar market in the U.S. alone. Tomatoes, heirloom lettuce mixes, cantaloupe. PM me.
Link Posted: 5/16/2003 10:19:59 AM EDT
[#3]
How important is liquidity?

What level of risk are you comfortable with?
Link Posted: 5/16/2003 10:22:20 AM EDT
[#4]
Or try the 'couch potato fund- 50% index funds / 50% bonds.'
Scott Burns :   http://www.dallasnews.com/business/scottburns/
Link Posted: 5/16/2003 10:24:19 AM EDT
[#5]
Sorry forgot to mention.  Needs to be liquid and not too risky, but it doesn't have to be a 'sure thing' either.  I could invest in riskier things, but would need data to back it up before buying.
Link Posted: 5/16/2003 10:26:13 AM EDT
[#6]
DEFINATELY Machine Guns.
Link Posted: 5/16/2003 10:26:27 AM EDT
[#7]
Here's the best thing you could spend $10k on, an Auto Ordnance M1A1 made in Bridgeport. You will never lose money on it and it will be a lot of fun as well. If the economy totally tanks and SHTF, it will be more useful than paper.....

think about it.
Link Posted: 5/16/2003 10:28:13 AM EDT
[#8]
[size=6][b]M16[/b][/size=6]
Link Posted: 5/16/2003 10:31:56 AM EDT
[#9]
Quoted:
[size=6][b]M16[/b][/size=6]
View Quote


yep.....sounds about right.
Link Posted: 5/16/2003 10:34:56 AM EDT
[#10]
Quoted:
[size=6][b]M16[/b][/size=6]
View Quote



Seriously, they have DOUBLED in price in the last few years, and will continue to do so.
Link Posted: 5/16/2003 10:35:41 AM EDT
[#11]
for a speculative gamble, you may want to consider some shares of sirius satelltie rado (siri).

also i think suppressors are a safe bet too.
Link Posted: 5/16/2003 10:40:45 AM EDT
[#12]
Build a financial base.  Something you can't loose unless its TEOTWAWKI.

Do a ladder CD deal.  I'd invest $2,000 in five CDs that come due a year apart.  Each year a CD comes due.  If economy sucks you can reinvest in a five year CD or if your straped for cash you got $2000 plus interest.

If economy looks like its getting better take some or all the interest and buy stocks or bonds.  When ever you get money (tax return etc...) put it into one of the five CDs.  Bigger CD equal more interest which equals more stocks.

If stocks go bust you'll always have the CDs to fall back on and restart your stock investment.

Shok
Link Posted: 5/16/2003 10:57:16 AM EDT
[#13]
A long term investment?
I would suggest an index fund.

Short term?  If you don't want much risk, Bonds.
Link Posted: 5/16/2003 10:58:04 AM EDT
[#14]
Link Posted: 5/16/2003 11:15:06 AM EDT
[#15]
You have $10K to invest? Geez I need to stop buying Coke.
Link Posted: 5/16/2003 11:18:46 AM EDT
[#16]
Quoted:
[size=6][b]M16[/b][/size=6]
View Quote
ditto.  if you for some reason need to sell, you *will* get your money back (unless for some reason the '86 ban goes away, but I'd consider it a worthwhile loss).
Link Posted: 5/16/2003 11:26:27 AM EDT
[#17]
My Janus Special Equity fund is up 20% so far (year to date!)

Link Posted: 5/16/2003 11:30:02 AM EDT
[#18]
Damn!!  I must be an idiot, a DU troll or both!  I hadn't thought of a machinegun!!  

The Janus Fund sounds interesting as well though!
Link Posted: 5/16/2003 11:53:21 AM EDT
[#19]
[wave] Right here bro!
Link Posted: 5/16/2003 11:55:13 AM EDT
[#20]
Quoted:
[size=6][b]M16[/b][/size=6]
View Quote


What they said.
Link Posted: 5/16/2003 12:00:40 PM EDT
[#21]
I'm with Paul. Real estate, you can do it without even buying land. Just buy into a real estate investment fund or trust.

NFA weapons are another good investment. More fun than real estate too.
Link Posted: 5/16/2003 12:02:22 PM EDT
[#22]
Invest in ME.

I can take your $10,000 and in shrewd competitive firearm sales I can turn it into $10,100 in as little as 5 months.

Do you know how many Hapy Meals that would buy?
Link Posted: 5/16/2003 10:51:29 PM EDT
[#23]
Get an account with Ameritrade.  Diversify into Mutual funds,(stocks, bonds and real estate)
You can log in daily and see how much you made (or lost)

I've made maybe $700 over the past month on $8000, but of course could loose it just as quick
Link Posted: 5/16/2003 11:07:37 PM EDT
[#24]
Quoted:
Quoted:
[size=6][b]M16[/b][/size=6]
View Quote


What they said.
View Quote


Another vote for an M16.  You can get an M16A1 for about $8500 to $9500.  You'll probably make $500 to $1000 before the ATF paperwork clears.  The M16 market is just incredible these days.

rssc
Link Posted: 5/16/2003 11:08:08 PM EDT
[#25]
SteyrAUG's CheyTac group buy. But thats just me.
Link Posted: 5/16/2003 11:18:52 PM EDT
[#26]
Link Posted: 5/17/2003 12:13:58 AM EDT
[#27]
Are you investing for retirement or to buy something in the near future?  

If for retirement think long term.  Your portfolio asset allocation is directly dependant upon your current age, desired retirement age and risk tolerance.  Not to disparage some of the other contributors here, but most actively managed mutual funds are a sucker's bet.  Just because one fund in a fund family is doing well this year, does not mean it will do well next year or the year after that.  

90% of a portfolio's performance is a result of it's asset allocation.  Equities vs. bonds.  Small, mid and large cap. Domestic vs. international.  Value vs. growth.  View asset allocation of how much of each ingredient is needed for a cake recipe.  It doesn't matter what brand of flour, sugar or eggs you use, but the ratio of the ingredients to each other. Time in or out of the market and individual investments combined account for 20% or less of the performance.

I could ask you seven questions and based upon your answers tell you what mix/recipe/ratio you should use.  Use index funds like the Vanguard family to meet your asset allocation. Why?  They have lower operating expense ratios.  Why pay some guy to underperform the index while trying to beat it and diminishing your returns?

Rebalance it at least once a year to get your portfolio back to it's original allocation.  

Why am I being dogmatic?  This is just a glimpse of what is the gist of what is known as modern portfolio theory which has won a Nobel Prize in economics (Markowitz, Miller and Sharpe 1990). 99% of the clowns on CNBC can't hold a candle to that. For any of you econ. majors out there I know I haven't discussed expected return vs. risk, beta, sharpe ratios, alpha, CAPM, the efficient frontier and French and Famas three factor model, etc. but I'm trying to to gear this to non-econ. or finance majors.  

Also, I'm a fully licensed (Series 7, 66 and life and health)financial advisor and frankly disgusted at how brokerages and Wall Street play upon the common man's misperception that there is some magic formula/trick/crystal ball/tea leaf reading technique to beating the market.  The scary truth is: the average investor underperforms the market by at least 10%.  Why?  Because the average investor lets emotions guide his/her investment decisions.  The two biggest emotions "guiding" investors are greed and fear.  

Company policy prohibits me from saying for whom I work whilst on an internet chat room, but suffice it to say it's a major wirehouse.  

Do yourself a favor and buy "A Random Walk Down Wall Street".  Also, do a web search on Modern Portfolio Theory and look at those web sites to learn the basics.

Finally, don't withdraw from this portfolio and if you can, add to it periodically.

I'll step down from my soap box now.
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