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alternative places to invest

 
 
cporro
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      01-30-2011, 04:11 AM
i started investing about 11 years ago. at that time everything i read
was about US stocks. Later i read about bonds and then there is real
estate. these seem to be the main options.

but these days i wonder if there is something better. in the last 11
years we've had a major stock crash and a major housing crash. for a
few this worked out well. but most people watched their overvalued
assets evaporate.

so what else is out there? i don't want gold either btw. what about
micro-lending? or keeping the money more local where you can support
the place where your family lives? how do you find out about other
options? any recommended books? wouldn't community based lending be
better for all involved? i've come to see many large financial
institutions as high class grifters.

so much is focused on US stocks and traditional investments. i think
they are over hyped but i don't know where else to look.

 
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dumbstruck
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      01-30-2011, 01:56 PM
On Jan 29, 6:11*pm, cporro <(E-Mail Removed)> wrote:
> so what else is out there? i don't want gold either btw. what about


Click on categories http://finance.yahoo.com/etf/browser...=0&cs=1&ce=177

> micro-lending? or keeping the money more local where you can support


Lies, Hype, and Profit:
http://www.theatlantic.com/business/...finance/70405/

> the place where your family lives? how do you find out about other
> options? any recommended books? wouldn't community based lending be


Investing around home may be ok if you have genuine knowledge that biz
is good. Otherwise it can be putting too many eggs in one basket -
like the Enron employees that put only Enron stock in their IRA only
to evaporate along with their jobs. Maybe a fund of local banks across
the nation?

Anyway assuming you don't want to speculate on recovery of commercial
reits or something, you did miss the tricky category of commodities.
Things with industrial use such as palladium (pall) or cotton (bal) or
whatever is in http://noir.bloomberg.com/markets/co.../cfutures.html

 
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Don
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      01-30-2011, 05:12 PM
On Jan 29, 8:11*pm, cporro <(E-Mail Removed)> wrote:

> i started investing about 11 years ago. at that time everything i read
> was about US stocks. Later i read about bonds and then there is real
> estate. these seem to be the main options.
>
> but these days i wonder if there is something better. in the last 11
> years we've had a major stock crash and a *major housing crash. for a
> few this worked out well. but most people watched their overvalued
> assets evaporate.


A lot of experts over the years have stressed that the best time to
buy stocks is NOW, because there will always be ups and downs, and
getting in the game early is a good idea. And so much the better if
you get in during one of the "down" periods. According to that wisdom,
it would seem that right now, today, would be a great time to invest
in stocks, and real estate too.

But it is interesting that you don't hear that advice much at the
present time. In fact, if I recall correctly, you hear that wisdom
most often during one of the "up" periods. People, even knowledgeable
people, are now talking a lot about bonds and safe investments.
Somehow it seems that the present-day part of the cycle usually turns
out to be "special," unlike any previous episode, either at the bottom
or the top of the market.

 
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Ron Peterson
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      01-30-2011, 05:49 PM
On Jan 29, 10:11*pm, cporro <(E-Mail Removed)> wrote:
> i started investing about 11 years ago. at that time everything i read
> was about US stocks. Later i read about bonds and then there is real
> estate. these seem to be the main options.


A breakdown of peoples assets show that as the main places people are
invested.

> but these days i wonder if there is something better. ...


Having your own business is a good alternative with many side benefits
like being able to work 60 hours a week.

Buying collectibles like art and wine is a possibility, but isn't
practical for most people.

--
Ron

 
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bo peep
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      01-30-2011, 06:36 PM
On Jan 29, 9:11*pm, cporro <(E-Mail Removed)> wrote:
> so what else is out there?


There are stock options - puts and calls, spreads and straddles.
People who are not knowledgeable about stock options often have the
unfounded opinion that they are *always* highly speculative, but this
is not necessarily the case. Options are available in a wide variety
of prices, ranging from "in the money" to way *out* of the money.
These range from highly speculative to highly conservative, and
everything in between.

Also note that an option transaction actually involves two
transactions - one transaction creates or sells the option, the other
transaction purchases the option. So, they more speculative one of
those transactions is, the more conservative the other transaction
will be.

In any event, you would definitely need to do some considerable
reading on this subject before attempting to trade stock options.

 
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Elle
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      01-30-2011, 07:35 PM
On Jan 29, 9:11*pm, cporro <(E-Mail Removed)> wrote:
> in the last 11
> years we've had a major stock crash and a *major housing crash. for a
> few this worked out well. but most people watched their overvalued
> assets evaporate.


Those who were not diversified in stocks may have lost their shirts.
But the long-term investors who were and remain diversified, and
have been in the market at least six or seven years, are likely doing
fine.

Do you understand what it means to hold stocks? If a person does not
understand this, then he or she will never be comfortable when the
market declines for the short term, and stocks are probably a poor
choice for them.

 
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dapperdobbs
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      01-31-2011, 12:55 PM
On Jan 29, 11:11*pm, cporro <(E-Mail Removed)> wrote:
> i started investing about 11 years ago

<...>
> so much is focused on US stocks and traditional investments. i think
> they are over hyped but i don't know where else to look.


I gotta go with Elle and Don on this one.

The bottom line is that capital (money) is a store of value and a
factor of production. Making products and services is the objective,
not "making money." Only the U.S. Mint makes money.

Owning a stock is owning a share in a company which is a producing
enterprise. There are great companies with solid products and
services. Lewis Rukeyser had a cool story about two brothers,
investing the same $$ in stocks each year. One was lucky, and always
bought at the lows. The other was unlucky and always bought at the
highs. The unlucky one got started ten years before the lucky one did.
After 30 years, the unlucky one had more money invested. Interesting
little story.

One can start one's own company, but it is critical to do your
homework since something like 90% of all new businesses fail within
the first two years - because they never had a business plan to begin
with, never did their research on demand for product and services and
even if they got plain lucky on that, never organized, never had
adequate resources to produce (you must know what you're doing and be
able to do it). There are lots of books on start ups, and some elect
to go with a franchise - the business plan is all in a manual.

Investing in your home town is admirable, and Food Lion got its start
that way, I believe, tapping locals for five thousand each - that seed
capital came to be worth a couple of million for those who took the
plunge.

 
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Hayden
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      01-31-2011, 06:59 PM

'Elle[_4_ Wrote:
> ;709355']On Jan 29, 9:11*pm, cporro (E-Mail Removed) wrote:-
> in the last 11
> years we've had a major stock crash and a *major housing crash. for a
> few this worked out well. but most people watched their overvalued
> assets evaporate.-
>
> Those who were not diversified in stocks may have lost their shirts.
> But the long-term investors who were and remain diversified, and
> have been in the market at least six or seven years, are likely doing
> fine.
>
> Do you understand what it means to hold stocks? If a person does not
> understand this, then he or she will never be comfortable when the
> market declines for the short term, and stocks are probably a poor
> choice for them.


Well said, before investing in stock market beware of long term
investors.
They can raise or down the market.




--
Hayden

 
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dumbstruck
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      01-31-2011, 10:57 PM
On Jan 29, 6:11*pm, cporro <(E-Mail Removed)> wrote:
> so much is focused on US stocks and traditional investments. i think
> they are over hyped but i don't know where else to look.


I suppose this is another of those many posts where we all guess
differently on what the OP was asking, and the OP never comes back to
clarify. I hope they realize suggestions like mine can be dangerous
without some interactive clarifications.

But why didn't anyone guess they were asking about non-US stocks? It
ought to be a great diversification, but they are somehow hard to get
excited about for the first time in decades. Maybe that means it is a
good time to get in?

The emerging markets have great (although inflationary) economies, but
unfortunately their stock valuations seem high. Japan has been
slumbering for 2 decades. Euro land has been mostly exposed as a false
utopia, previously funding their social welfare by deferring nearly
all defense spending to the US taxpayer.

I think there is one sure bet investment to depend on - cotton
underware! Stockpile a lifetime supply in every closet or attic space
you can find. Look how cotton continues to skyrocket (noted by me here
months ago) compared to US or foreign developed/emerging stocks or
gold:
http://finance.yahoo.com/q/bc?s=BAL&...Cgld%2C%5EGSPC

 
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Elle
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      02-01-2011, 02:41 AM
On Jan 31, 3:57*pm, dumbstruck <(E-Mail Removed)> wrote:
> But why didn't anyone guess they were asking about non-US stocks?


One reason: Large cap U.S. based stocks so often have a huge
international presence that, as long as one is diversified across U.S.
based stocks, one will have significant exposure internationally.

> It
> ought to be a great diversification, but they are somehow hard to get
> excited about for the first time in decades. Maybe that means it is a
> good time to get in?
>
> The emerging markets have great (although inflationary) economies, but
> unfortunately their stock valuations seem high. Japan has been
> slumbering for 2 decades.


I do not think this sound bite describing Japan's stock market is
helpful, accurate or relevant. Japanese industry experienced a bubble
that peaked in the late 1980s and fell by one-half within five years.
It continued to decline. But Japan is so tiny that what happened in
Japan did not affect the economy of the whole world on any kind of
long term basis. Bringing up Japan's blip seems as relevant as
bringing up the Dutch tulip bubble of the 1600s.

snip political speculation that cannot be verified
> I think there is one sure bet investment to depend on - co

tton
> underware! Stockpile a lifetime supply in every closet or attic space
> you can find. Look how cotton continues to skyrocket (noted by me here
> months ago) compared to US or foreign developed/emerging stocks or
> gold:http://finance.yahoo.com/q/bc?s=BAL&...c=efa%2Ceem%2C...


So your guidance is to buy that which has been going up, on the hope
it will keep going up?

To the OP: Diversify. Buy and hold for the long run. Read Jeremy
Siegel, Ben Graham and others who have studied economies and the
nature of businesses on a macro scale.

 
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