Investment strategies in the current economy

[pjorourke]

Now you've hurt my feelings CM.

[charlestudor2005]

Originally Posted by CaptainMidnight

PJ, why should any of us pay attention to what you have to say regarding this subject? You may be very successful in your chosen field, but you are obviously not a left-wing economist like Krugman or Stiglitz.

Therefore you cannot possibly be very smart.

Finally, CM & TTH agree on something!!!

[thx]

I just would like to know where I can invest my money with the maximum return.

Sounds like I need to buy some real property.

[..]

Originally Posted by CaptainMidnight

I know others who are very bullish on copper, noting that the Chinese have stockpiled fairly large quantities as a strategic investment and in anticipation of demand created by construction projects over the next 10-20 years,[/URL]

nothing wrong with this assessment -- just very narrrow-minded. they buy pretty much any basic commodity which is useful in industrial manufacturing as long as the price is good. If the price is not attractive they switch.

copper to them is as interesting as e.g. molybdenum or many other pre-production commodities.

To be honest what else should they do? Hoarding even more Dollars!?

[..]

Originally Posted by CaptainMidnight

Getting back to investments, a couple of the smartest private equity managers I know are forming entities for the purpose of investing in productive farms. Boring stuff. Wheat, soybeans, etc. But they feel that the long-term future of agricultural commodities is very bright. I agree.

Dearest Cpt. 00:00 this made my day!

It seems that you've never traded agricultural commodities. There's no long-term future in that. You really need to buy and sell.

And it's certainly not boring -- esp. this year was nice: Russia had a major drought and fires, Pakistan had floods, so the markets had some pretty nice opportunities.

But there's no long-term future in that -- except as long there's a move, there's a trade.

Long term dunno yeah maybe buying agricultural land -- dunno, but still better than buying RE.

Anyways I'm probl. totally wrong and you should fade me anyway!

[WTF]

Originally Posted by CaptainMidnight

not a left-wing economist like Krugman or Stiglitz.

Therefore you cannot possibly be very smart.

Yea those leftist sure seem hell bent aganist banking welfare.

Why would any free market guy be againt that? Hmmmmmmmmmmm.

Originally Posted by ..

To be honest what else should they do? Hoarding even more Dollars!?

Agreed, China is making us their bitch until they do not need us anymore.
We print dollars. China keeps their currency rate low. We buy their goods. We lose manufacturing jobs. They take our dollars and buy resources from around the world. Those countries sell off their assets to buy oil. We go to war to make sure oil stays priced in dollars. If you don't believe that ask Saddam. Oh yea we buy a shit load of oil.

On a side note China is investing a pile of those dollars in US companies. Companies that are now able to shape election with campaign contributions that are anonymous. Idiotic to let this happen. Unless of course you believe in free speech....... in Chinese.

[ClairJordan]

You guys are brutal! Where's the love...saving it for us ladies?

[Egrbvr]

Originally Posted by thx

I just would like to know where I can invest my money with the maximum return.

Sounds like I need to buy some real property.

Rental property (condos) along the FL Panhandle are dirt cheap now, probably down 50%-70% from their peak a few years ago, and the rental market will get better as the economy rebounds; next, stock in companies with hard assets, oil, mining, precious metals.

Sorry to be on-point.

[Texas Contrarian]

Originally Posted by ClairJordan

Where's the love...saving it for us ladies?

Absolutely, Clair!

Originally Posted by WTF

Yea those leftist [sic] sure seem hell bent aganist banking welfare.

Why would any free market guy be againt [sic] that? Hmmmmmmmmmmm.

Remember when I suggested that you try to make more of an effort to avoid painting with an excessively broad brush?

I am a libertarian-leaning individual and therefore something of a "free market guy", but certainly believe there must be robust "rules of the road."

And I agree with many of the points you've made regarding this issue. In fact, I agree with reform proposals that some leftist economists have proposed.

But WTF, did you notice that Your Heroes in the administration and congress did little to prevent massive abuses and little to lower the risk of more financial crises? They did virtually nothing about Fannie and Freddie, TBTF, or the ability to play "heads we win, tails taxpayers lose" games with other people's money. Moral hazard lives on. And the too-big-to-fail banks are now even bigger than they were before the crisis began!

Did you also notice that bank stocks actually went up when details of FinReg came out? When Wall Street firms hire lobbyists, they're pretty good about making sure they get their money's worth. And they're pretty good at hedging. They buy congresspersons and senators of both parties. These tend to be honest politicians, too. When they get bought, they stay bought!

That, along with the fact that we seem intent on continuing our fiscal kamikaze mission, is why I said earlier that we're just building a bridge to the next crisis, not to a more prosperous future.

[Roark]

Invest local,and/or companies and real estate your thoroughly familiar with.
The rest great drama.

[ClairJordan]

I get the foreclosure list every month for the New England state I live in. See if your Realtor can get that for you. Fix and flips, or, better yet, longer term rentals are a tangible investment I wish I could make.

[pjorourke]

Way back, many years ago, I went to a banking school. Of the things I remember from the classes, one was a primary rule for lending: "Never take collateral that eats".

Anyone planning to invest in real estate needs to think along those lines. Houses to be fixed and flipped have carrying costs that can eat you alive.

[Big Juan]

Amen Brother PJ. I've been in development/ home building since '84 as my main income generator. You must get in and out at the right times. Discretionary income only!!!

I have made a pile and lost a pile. Very few markets will bring appreciation. Most generally deliver inflation equity. I have made huge returns on resort land, but you must budget for carry costs, as down times are sharp and common.

Such is the case in stocks. The 'let it ride' advice is fine, as long as the company doesn't tank; i.e. Qualcom!!!!!!

Even gold has recently turned huge for me in the last 4 to 5 years. Bought at 440 per ounce and it is floating around 1300 today. First bought it in school investment class in 1974 at $400.

It is all risky. You just need to understand it is all risky. Just like getting geeked about the provider's photos and come game time ......... the cute crooked smile is a snaggle tooth that leaves a nick on the Juan!!!

Damn not right, but what are you gonna' do?

[atlcomedy]

Originally Posted by Roark

Invest local,and/or companies and real estate your thoroughly familiar with.
The rest great drama.

Investing in what you know well is great. In fact it may be one of the few areas where you have superior information than the balance of potential investors. Afterall isn't better information the nirvana for any investor -- whether a Wall St. big shot or small town guy on Main St.

The big watchout is don't become sentimental about things.

Originally Posted by pjorourke

Way back, many years ago, I went to a banking school. Of the things I remember from the classes, one was a primary rule for lending: "Never take collateral that eats".

Anyone planning to invest in real estate needs to think along those lines. Houses to be fixed and flipped have carrying costs that can eat you alive.

Very true & I'll extend that further to entrepreneurial ventures.

Everything will cost more and take longer than you are told it will. Build that reality into your projections. Look at some pessimistic scenarios. Are you okay with those? Can you afford those?

Finally, don't underestimate the value of your time. Using the fix & flip example, even if you aren't physically doing the work, you will spend countless hours playing the role of "project manager"

[Big Juan]

Originally Posted by CaptainMidnight

Absolutely, Clair!





Did you also notice that bank stocks actually went up when details of FinReg came out? When Wall Street firms hire lobbyists, they're pretty good about making sure they get their money's worth. And they're pretty good at hedging. They buy congresspersons and senators of both parties. These tend to be honest politicians, too. When they get bought, they stay bought!

CM,
The reason they went up is OUR money was used to clean their balance sheets. No debts left money to invest. The TARP aided banks have been the largest traders of stocks, commodities, etc. Large enough to manipulate a market short term, drive value upward, sell, proft and ....... wait...... here it comes........ make the market and economy appear stronger, so their hands can jack us off when we're smiling.

Want to really be disgusted? Check who the largest shareholders are today of those bank stocks.