I know this isn't the most relative topic here, but obviously there is a great deal of knowledge and economic understanding in this community so I feel it is a good place for it.
What would you do if you had $1000 to invest, how would you split it up and where would you put it?
The actual amount of money is less important to me, I am more interested in percentages. So I guess for this hypothetical it could be $1 or $1,000,000 but we assume that you don't need the money to live and that you plan to invest it.
Please note, I am not looking for cheap advice. I am simply curious. I feel as though sometimes libertarians are type-casted as gold bugs... not a bad thing... but even though I believe that the current economic system is in a slow and painful decline (or will implode violently in the near future) I have a hard time being comfortable with pooling all my money into something I see ads for in between segments of glenn beck. That might be a psychological problem on my part... but still leaves me curious. What do a-libs generally do with their capital, or hypothetical capital?
T'will be interesting to see how many here are actual capitalists, as opposed to political capitalists....
Gold's been goin up for a while (I tend to think it's going to bust soon, but i've been thinkin that for a while, so don't necessarily listen to me. If gold starts going down, switch to bonds. Idk the validity of this last statement, but I've been told it a few times.
Think politics, I'd probably go with whatever hot shot plan the government has to prop up some business.... probably healthcare. Health insurance companies are about to get millions of new customers (everyone knows the senate isn't repealling that any time soon) and at the same time increase rates exorbinantly (not because they need, to but because they can, mind you ).
Green tech, or nuclear would probably be a good long term investment.
If you want long term investments (and let's be honest $1000 isn't much) remember the cliche: diversify your portfolio.
In States a fresh law is looked upon as a remedy for evil. Instead of themselves altering what is bad, people begin by demanding a law to alter it. ... In short, a law everywhere and for everything!
~Peter Kropotkin
I would do full time research on commodity companies on the TSX. Two years ago a libertarian friend found a gold company that looked very good for capital gains. Sadly, I didn't have any money to invest at the time. He made 4-5x his money over about a year. In hindsight I could have used my credit card.
I'm hoping for some kind of crash in Canada soon so I can buy something dirt cheap. Real commodities are too slow for me. Any hint of a new housing bust and I will be looking at options to cash in on the fall.
10-15% in physical precious metals (coins, bullions, ingots... NOT paper gold), 10-15% in cash. That's the basis. You are left on what to do with the remaining 70-80%. The golden rule is never to put too many eggs in one basket. Funds are a good way to go, as long as you inform yourself throughly before making any purchase: right now the hottest are the commodities-oriented. I don't know if this an option available in your country but bank-issued obligations pay well (for the times we live in) and you can sell them at any time. Most banks will give you a premium if you keep them for, say, more than two years. I've always had problems with stocks: in my opinion they require far too much time to be followed properly. But if I really have to my bets are always the same: pharma and oil/mining. They are the safest (unless there's another Vioxx-like scandal): in the oil/mining sector always prefer the companies actually digging/pumping stuff out of the ground. I don't have any at the moment but short term Treasury bonds (both US and euro) are another sensible option since interests are rising. The worst possible investment right now are long-term Treasury.
Finally always remember what Marc Faber says "Don't be greedy: if you make 3% a year (inflation adjusted) you will leave your heirs a fortune".
In the absolute short-term I'd say stock up on staple foodstuffs before Fed inflation and rising food and energy prices really hurt wallets this year. At the very least you would be able to trade your grains, sugars and meats in barter if you had to.
Epicurus:T'will be interesting to see how many here are actual capitalists, as opposed to political capitalists....
This is a rather trollish statement. What's it suppose to prove?
Epicurus:Think politics, I'd probably go with whatever hot shot plan the government has to prop up some business.... probably healthcare. Health insurance companies are about to get millions of new customers (everyone knows the senate isn't repealling that any time soon) and at the same time increase rates exorbinantly (not because they need, to but because they can, mind you ). Green tech, or nuclear would probably be a good long term investment.
Terrible investing advice. Do you actually do this? Something tells me you don't and your just typing for it's own sake(no offense).
Whoever said it earlier was right. Staples, agriculture, minerals, commodities. Those will hold their price, or rise in price in times of concern. I made a fortune this year on silver alone. If you want to do this in a liquid fassion look into ETF's, stock indices, ect....
Less risky than individual company investing, and you get insta diversification of sorts/
I will be doing it in late 2012, if that's what you're asking. I also did it with CHase (not me personally, but that's a long story).
Epicurus:I will be doing it in late 2012,
User makes exceedingly arrogant statement, and hilarity ensues.
Indeed, twas very interesting.
"I did it with Chase..." I'm not just speaking out my arse. So I thought this would be an interesting ethnography on how much people here put their money where there mouth is.... and? Is that not a valid question? After all, if consumers decide what they value by what they buy, as opposed to what they say (the Wal Mart debate)... wouldn't the same hold true for you?
Epicurus: So I thought this would be an interesting ethnography on how much people here put their money where there mouth is.... and?
Why? And what exactly does it prove. I have made a small fortune off stocks over the past half decade, especially during the recession. I know proponents of socialism(Close friends of mine) who have done the same. What difference exactly does it make? What are you trying to prove?
Epicurus:Is that not a valid question?
Im asking you why it's a valid question. What does it apply to.
Epicurus:I'm not just speaking out my arse.
I usually take arrogance with a high level of suspicion. Especially folks who are trying to do what your doing right now. Forgive me if I don't believe this statement.
Stupid comment. I'm a capitalist every time I promote capitalism and make a voluntary exchange. What you probably meant is 'investor', in which case it doesn't matter who invests their own money into the ventures of other people.
I just wanted to know who was putting their money where their mouth is. Who are the real capitalists here? Brian's comment is valid, form his point of view. From mine it is not. It was an ethnography for personal study I wanted to let the community know I was conducting
Value.
Plz do. I encourage it. One should take all things w a high level of suspicion. I could even give you a detail of my investment history, but you don't have to believe that either.
Epicurus:Plz do. I encourage it. One should take all things w a high level of suspicion. I could even give you a detail of my investment history, but you don't have to believe that either.
In fact, I won't. Plus, what you wrote above doesn't sound like something I'd be interested in at all.
Epicurus:It was an ethnography for personal study I wanted to let the community know I was conducting
Oh I'm sure. <Eye rolling emocon>
filc:Whoever said it earlier was right. Staples, agriculture, minerals, commodities. Those will hold their price, or rise in price in times of concern. I made a fortune this year on silver alone. If you want to do this in a liquid fassion look into ETF's, stock indices, ect....
Same here. (c: The two silver ETFs I went for earlier in the year brought me to 20% return for the year. I stick to ETFs and indices myself, I figure if it ever comes to the point where owning physical gold/silver will really matter, a shotgun and some canned soup and bottled water will matter more or just as much. My investment advice is always to go for commodities and precious metals through indices, try and track bubbles and go for the ETFs and indices that are focussed in those countries like China currently, hit the occasionaly stock(s) with some throw away money if you can and you think you'll get a quick turn around gain and don't be surprised if you lose it all, and otherwise plan for the zombie apocalypse with a good store of food, water, and a handy weapon. That covers all bases as far as I can see.
Expect the best, plan for the zombies.