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If this is true, where is the best place to invest 10k-100k USD today?
by malvosenior 8y ago
If this is true, where is the best place to invest 10k-100k USD today?
- baybal2 8y agoInto a piece of yellow metal. Edit. More background on that: In 2014, after years and years of my parents droning "think about buying a house," I finally decided to teach my parents a lesson, and show them just how bad their investment advice is. So in the end, I lost around 53 thousand dollars in total from FX, fees, lawyers, drop of property value, and my ability to sleep well at night. And in 2016, I got kicked out of Canada, as my employer was unable to secure me an LMIA after trying 3 times. The only thing that prevented me from hitting the bottom was that I was also saving gold since I was 15, when I first bought few crumbs from semi-legal gold prospectors from China.
- interfixus 8y agoNo idea why you are downvoted. Indisputably the safest investment for several millenia running.
- bytematic 8y agoDuring periods of fx doubt, even more so. This includes recessions and right after them
- rfinney 8y agoInflation adjusted price of gold is down almost 50% from 1980: https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-...
- interfixus 8y agoHow many 1980 investments are at fifty percent or better today?
- gnopgnip 8y agoSince 1980, after adjusting for inflation Gold lost 50%, the S&P 500 is up 600%, or 1700% with reinvesting dividends in the S&P 500.
- interfixus 8y agoCompletely beside the point. The question was safety, not potential profitability. Also, please paint the full picture: How many percent of all 1980 investments retain halt their value or more today? My first guess would be: A small minority.
- gnopgnip 8y agoLooking at safety, investing in individual stocks or precious metals like gold is a poor choice. Index funds, or bonds have much less volatility. To paint a full picture, how many people who invested in physical gold still have it, and how many had it stolen or lost it, or were scammed buying something other than real gold?
- chimpburger 8y agoGold is extremely volatile. You can lose 50% or more in the medium term if you buy when its at an all time high.
- soundwave106 8y agoDepends what you mean by "safe". Gold is considered a commodity investment, and shares the high volatility that is common in this class. (https://view.ingwb.com/sector-and-volatility-commodities https://view.ingwb.com/sector-and-volatility-commodities) Gold does have unique historic status as a currency or a backer of currency. I'm not in 100% agreement, but this does mean some see gold as a hedge against large-scale financial trouble. However, that same historic status has made this asset in particular vulnerable to investment scams. (https://www.aarp.org/money/scams-fraud/info-2016/gold-coin-investment-scams.html https://www.aarp.org/money/scams-fraud/info-2016/gold-coin-i...) This is one caution about this investment that you don't have to worry about as much compared to if you invest in, say, pork futures. I would argue the "safest investment" is a diversified portfolio, personally.
- nodesocket 8y agoGold isn't as invere to the market as people think. In the last month it is only up 1%[1], while the market has tanked. [1] https://yhoo.it/2Uptpoy https://yhoo.it/2Uptpoy
- RyanShook 8y agoDepends on your time horizon. If you have over 20 years before retiring the broad stock market is still likely going to outperform pretty much any other investment but it will be a bumpy ride.
- Flavius 8y agoWhy would you invest just before a recession? Keep your cash and invest when the market is down.
- rohit2412 8y agoSo bonds, or money market funds
- bytematic 8y agoThere are some indexes that go up on market volatility, as well as some "reverse" indexes
- docker_up 8y agoThose are meant for day-trading and now for long-term or even medium term investment.
- alttab 8y agoYou should always be investing because timing the market is a fools errand. The question is how much?
- rohit2412 8y agoIsn't that timing too? Or it is wise when you allocate 5/95 split to stock/bond but fool's errand when it is 0/100
- alttab 8y agoConsistently invest an amount that you are comfortable with. It's called dollar cost averaging. I'd personally keep dry powder for when the market is far beyond the standard deviation of historical records. 2008 and 2018 would both be years this is true. Shorting though is only for the brave or stupid. Personally, I put a certain amount in every quarter.
- techopoly 8y ago
- robertcorey 8y agoif you think the market will go down you should short it...
- rootusrootus 8y agoPretty much this. Market trends change how you invest, but they certainly don't prevent you from profiting either way. The last couple months have been particularly lucrative if you're shorting the market.
- malvosenior 8y agoWhat would be the best way to do this? Is there an index fund or something that is based on shorts? Sorry for the lack of knowledge.
- nemo44x 8y agothere's inverse ETF's. SPXS is a leveraged "bear fund" that gains value as the S&P500 decreases in value. SPXS is particular will move 3X the movement of the S&P500 so a loss of 1% in the market is a gain of 3% in SPXS. SPXS has been an awful fund to hold since 2009.
- matwood 8y agoBe careful with leveraged ETFs because of decay. They are really only good to hold short periods. https://seekingalpha.com/article/1864191-what-you-need-to-know-about-the-decay-of-leveraged-etfs https://seekingalpha.com/article/1864191-what-you-need-to-kn...
- vannizhang 8y agoI have n account with Charles Schwab and it's pretty straightforward to short a stock or etf: https://www.schwab.com/resource-center/insights/content/what-is-short-selling https://www.schwab.com/resource-center/insights/content/what...
- smogcutter 8y agoI'm pretty ignorant here, how do you short "the market"?
- claydavisss 8y agoinvesting should always be based on your age, not market conditions over 60? lower risk...it may take longer for riskier assets to recover than you have to live under 30? higher risk...the markets have always done well over a multi-decade timeframe
- cenal 8y agoIf you are in the USA and have capital gains look for an opportunity zone investment. Incredible new upside of the Tax Cut and Jobs Act of 2017. * defer your capital gains that you owe today * pay no capital gains on any returns if you comply with terms of opportunity zone investments (10 year holdup of capital requirement) * earns a 15% discount on your original capital gains taxes owed
- ctjackso 8y agoIf you're investing for the long term, why not just find a spot you're comfortable with on the way down and invest money in an index fund while the market is down? A recession is the perfect time to invest, isn't it?
- deleted 8y ago[deleted]
- faramarz 8y agoI'm playing the cannabis market right now and i'm bleeding. not just because of the slow growth of the canna industry, but the fear in Trumps trade wars and volatility in commodities is affecting every asset class. Honestly, I would keep my hard cold cash. sit on it until the opportunity arises.
- briandear 8y agoMaybe I am ignorant, but how does a trade war affect cannabis stocks? Is there some China connection I am missing?
- nine_k 8y agoIn the spring of 2008 I bought gold. It worked quite fine.
- gnopgnip 8y agoThe bond market, and international stock market are less correlated with US large cap stocks. Historically though you are still better off investing in the S&P 500 or similar, it is virtually impossible to know what the market will start falling and when to sell, or when it is at the bottom and to start buying again. Time in market beats timing the market.
- briandear 8y agoIf it were my money, I’d be all in with stocks that have exposure to China trade war fears. When the current strife passes, they’ll rocket back up. I tend to buy the fear and sell the joy (if I sell at all.) But that’s just me.
- clubm8 8y agoIf you have a good long term strategy you shouldn't be worried about timing the market. I invest in a few ETFs, 80/20 stock to bond ratio, a mix of domestic USA / international. I probably won't make massive gains but in the long run I'll make ~5% steady. I think if you value steady returns over wild swings you can do well with Vanguard ETFs - the low overhead offsets the les returns than day trading / active buying and selling