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Where to Invest?


Capt. Kaos

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First off a disclaimer: I am in no way coming to ES as my sole source of investment education. I am looking for general ideas, thoughts, and maybe a few good stories along the way.

ok, now to the point.

Let's say you have 8-10k to invest in the long term, what are the options you would look at? Ideally would have a great return and atleast partial access to some of the money.

What ya got?!?

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First off a disclaimer: I am in no way coming to ES as my sole source of investment education. I am looking for general ideas, thoughts, and maybe a few good stories along the way.

ok, now to the point.

Let's say you have 8-10k to invest in the long term, what are the options you would look at? Ideally would have a great return and atleast partial access to some of the money.

What ya got?!?

Look for companies whose stock value dropped alot but who you think will be around 2 years from now when the market rebounds. Bank of America is one I have my eye on, GE is another one. I wouldn't say they are to big to fail, but I think they will be around and in pretty good shape 2 years from now. Wal-Mart Might be another good one assuming that Barry-O doesn't get the card check thing passed and forces walmart workers to unionize. There are some banks around who did not take TARP money and who don't deal in mortgages who's stock tanked with the other banks, but they are actually in good shape.

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Define long term. 5, 10, 20 years?

I guess that would all depend. If we had access to the money in case of emergencies then I would say: whatever would get us the best return, be it 5, 10, or 20 years. If we had to be completely locked out of the money then a shorter time frame would be ideal. Allowing us to reevaluate the idea and our needs on a shorter timeframe.

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Well with stocks you can alway access your money, however you might not get what you put in. If you go long on stocks you are betting the stock prices rise.

However, by what you just said it sounds like you are looking at investing your emergency cash, which is not something you want to do, keep it in savings or a money market.

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Well with stocks you can alway access your money, however you might not get what you put in. If you go long on stocks you are betting the stock prices rise.

However, by what you just said it sounds like you are looking at investing your emergency cash, which is not something you want to do, keep it in savings or a money market.

No, this is not our emergency cash. I am just a bit fickle about getting to my money :)

I was born at night but it wasnt last night, no way I would invest emergency money. If I did, I would hope someone would give me the ol' :chair:

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I guess that would all depend. If we had access to the money in case of emergencies then I would say: whatever would get us the best return, be it 5, 10, or 20 years. If we had to be completely locked out of the money then a shorter time frame would be ideal. Allowing us to reevaluate the idea and our needs on a shorter timeframe.

Do you have 6 months worth of expenses liquid? In a bank account or something you can get access to in a real emergency. I know it's not what you're asking, but it's actually a good idea to keep that cash in reserve, if you don't already.

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Do you have 6 months worth of expenses liquid? In a bank account or something you can get access to in a real emergency. I know it's not what you're asking, but it's actually a good idea to keep that cash in reserve, if you don't already.

yes, we do. I guess using the word emergency was a mistake. I just dont like not being able to get at my money. Just ask Uncle Sam.

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Personally, I have some money in China. HSI index to be exact. There's only one fund I could find that deals with the Shanghai Composite and it's doing quite well this year.

I'm also eying India, Taiwan and Indonesia in that order. I betting on those emerging markets to both pop and have long term potential. You have to really pay attention though and digest a lot of news in order to stay on top of things.

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Now that's an idea!

I hear you cant go wrong with the Elvis ones.

Just do your research then and look for undervalued stocks. When the economy turns those companies will gain back what they lost and you will get a nice return on your investment.

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Gotcha. So it'd have to be a big, ginormous emergency for you to need to get access to that money. So not an IRA, where you'd get penalized massively for early withdrawal. CDs could be an option. You divide up the money and put it into various CDs with different maturity rates (1 year, 2 year, 5 year etc) so you could have access to some of it in cycles but the rates aren't very good on those right now.

Stocks and/or mutual funds are really the only thing that I can think of that's gonna give you a decent return and relatively easy access to the money. But I'm thinking that's at least a 5 year horizon to see some worthwhile returns.

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Personally, I have some money in China. HSI index to be exact. There's only one fund I could find that deals with the Shanghai Composite and it's doing quite well this year.

I'm also eying India, Taiwan and Indonesia in that order. I betting on those emerging markets to both pop and have long term potential. You have to really pay attention though and digest a lot of news in order to stay on top of things.

I was thinking about India a year ago too, especially with the "emergence" of corporations like Tata. But anyway, how do you go about buying stock in companies there? Or do you do it through a US based company with an Asia/Emerging markets fund?

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I was thinking about India a year ago too, especially with the "emergence" of corporations like Tata. But anyway, how do you go about buying stock in companies there? Or do you do it through a US based company with an Asia/Emerging markets fund?

I purchased MCHFX, a mutual fund with a Chinese co-manager based in S.F. It's a no-load, no-transaction fee fund with decent performance over that past 10 years. There are others out there that are doing better this year but they don't have a long track record. China is darn tricky because it has different types of shares with different types of risks and limitations associated with them. CAF is a closed-end mutual fund I've paid attention to this year. I missed it when it was at $22, it's now above $31 a share.

I personally am not putting much if any money into individual stocks. Mainly because I can't observe them up and close, and with China transparency is a concern. I'm planning to stick with mutual funds and ETFs in terms of investing overseas.

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Be short when the market is trending short; long when it is trending long. If you are losing money, jump out; if you are making money, don't get too greedy. I wouldn't be "investing" in the stock market right now, as I have no faith that any companies are honest.

The best investment is also yourself; think if there are any "dream job" steps or opportunities you could use that money to help further your career or start a new one.

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Personally I've invested in the SSO (ETF that tracks the S&P 500) and the SUSIX (JPMorgan real estate). Long term I strongly believe these will be great investments.
That is the 2x daily return ETF. SPY is the more conservative ETF...
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