Where To Invest Money Today

tabs · 09-23-2010, 12:11 PM

We have had a RE Bubble...and now we are moving to a BOND BUBBLE..and that is likely to burst within the near to medium term.

So RE is dead dead dead..for the next few years..my guess is at least the next 3 to 5 years...

Money in Bank Accounts..don't make me laugh...you get no interest rate even worth talking about.

Bonds...there has been such an ON THE BEACH MENTALITY...that one is likely to have a negative return on that investment...witht the risk of the BOND BUBBLE BURSTING...and a loss of principle unless one waits for the Bond to mature...In a Bond Mutual Fund that might be NEVER...

So where do ya put your dinero....to make a decent return on your capital..

IN BIG CAP STOCKS THAT PAY A DIVIDEND...Exxon is the perfect example...it currently has a low PE Ratio (historically) and is at the lower end of its historic trading range...has paid a dividend every quarter since before I was born...and has a low BETA..

So what you have is a situation where you collect a 3% or so dividend and any appreciation in the stock that is likely to occur because of being at the lower end of its trading range...and the stock is known for its low volatility...

So you are relativily protected from any down turn..your worst case scenario is that you have to wait for a return in stock price WHILE U COLLECT your Dividend. Since you are looking at the Dividend stream that time is not a big concern. Further the upside is if the stock should return to its historic trading range you stand to pick up 10% to to 20% Capital gain on your investment...on top of the Dividend.

It is really very simple...

Dantilla · 09-23-2010, 12:19 PM

Quote:

Originally Posted by tabs

So RE is dead dead dead..for the next few years..my guess is at least the next 3 to 5 years...

It is really very simple...

Now that all the unwashed yahoos have left real estate, it's about time for me to jump back in!

After a few years of rediculous prices, real estate is now on sale. I'm glad the lemmings are fleeing. Lots of bargains available now.

I love hearing "real estate is dead".

myamoto1 · myamoto1's Garage

TMX - never failed to pay a dividend

ODDJOB UNO · ODDJOB UNO's Garage

whats "CHARMIN" toilet paper trading at?????????????

i'm sure there are lots of people POO-ING themselves silly these days over investments.

even in airy-zoney R.E. market i have been getting quite a few calls on my land(for sale by owner) recently. seems those silly canucks with the stong canuck buck vs. the u.s. buck are swooping in on those who ARE UPSIDE DOWN.

WHICH I AINT!

so majority of home/land sales are still foreclosures and it will be for a long time to come here in the southwest dezerts.

Rich76_911s · Rich76_911s's Garage

Short puts in the TBT. Or just buy it. Yields can't go that much lower.

lukeh · lukeh's Garage

American Realty Capital Trust. (non-traded REIT)
KBS REIT II (non-traded REIT)

These two (as well as others) made out like bandits during the panic and I expect them to cash in on it in the next couple years. I moved my ROTH into both several months back.

fuelie600 · 09-23-2010, 01:27 PM

Quote:

Originally Posted by tabs

IN BIG CAP STOCKS THAT PAY A DIVIDEND...

One hurdle facing this choice is the sunset of the Tax Increase Prevention and Reconciliation Act of 2005 or so called "Bush Tax Cuts." There will likely be some money flow out of dividend stocks as their yields are effectively reduced by as much as 30% due to the tax increase.

OTOH, if the present administration gives in to maintaining TIPRA, there should be some money flow into these positions.

nineball · 09-23-2010, 02:35 PM

Quote:

Originally Posted by Dantilla

Now that all the unwashed yahoos have left real estate, it's about time for me to jump back in!

After a few years of rediculous prices, real estate is now on sale. I'm glad the lemmings are fleeing. Lots of bargains available now.

I love hearing "real estate is dead".

amen. see my post in the real estate/investment thread. there is a TON of money to be made in RE over the next few years. i am buying up as many rental properties as i possibly can right now, 4 so far this year, all under $20k total investment each.

Bill Douglas · 09-23-2010, 02:51 PM

As much as I hate to brag

but I've just made 37% on some Australian mining shares. Lihir Gold was doing very well and got taken over by Newcrest Mining Ltd.

I did say six months ago Australian mining shares.

Yesterday I bought some airport company shares. My thoughts are as we climb (crawl) out of the recession there is going to be more frieght and passengers, and in this corner of the world the Asians are starting to travel again.

There is a gun auction tomorrow so I can go there with a clear conscience

john70t · 09-23-2010, 04:44 PM

Even in depressions, the majority of the population are going to be purchasing the basics(food,gas,medicine) so I'd expect those to remain semi-stabile.

I was lucky during the downturn having money in GE(small dividends but stable), Calamos(good in hard times) and Fidelity International(to play the field).
I was also unlucky by putting most cash in RE because after getting screwed in so many ways by banks, I wasn't going to pay them a dime in interest. I was fiscally conservative while the world gambled on hookers and blow, got repaid, and sunk the market around me.
Lost big-time on that, but still breathing and eating. Life could be worse.

Porsche-O-Phile · Porsche-O-Phile's Garage

Yes and no. J&J is in the crapper right now, among other "staples".

tabs · 09-23-2010, 05:05 PM

Quote:

Originally Posted by Bill Douglas

As much as I hate to brag

but I've just made 37% on some Australian mining shares. Lihir Gold was doing very well and got taken over by Newcrest Mining Ltd.

I did say six months ago Australian mining shares.

Yesterday I bought some airport company shares. My thoughts are as we climb (crawl) out of the recession there is going to be more frieght and passengers, and in this corner of the world the Asians are starting to travel again.

There is a gun auction tomorrow so I can go there with a clear conscience

Not really much to write home to MOther about in your auction tommorow...but DO BUY Lots 892, 893 and 894....Jan Stills Book on the Geman Lugers and Axis Pistols...All three books are going for roughly $300 to $500 USD EACH...Check out ABE Book Exchange...for current prices...

tabs · 09-23-2010, 05:08 PM

Quote:

Originally Posted by Porsche-O-Phile

Yes and no. J&J is in the crapper right now, among other "staples".

That is why JNJ is a good deal right now....Prices are depressed and you get a dividend..

The change in the Cap Gain tax is not going to affect the Big Cap Dividend stocks as they are already beaten up...

Bill Douglas · 09-23-2010, 06:42 PM

Thanks Tabs. I'll have a punt on those if no one else knows what they are worth. I'm thnking of lot 453 as a shooter, S&W model 28-3 Highway Patrolman .357, and maybe some other stuff.

Eric Coffey · 07:50 PM

Quote:

Originally Posted by tabs

So RE is dead dead dead..for the next few years..my guess is at least the next 3 to 5 years...

Maybe on the retail/financed market (and that's still a maybe and depends on where you want to buy, and at what price points). Lots to be made on the other side(s). If you have cash to play with, and know what you are doing, it's a very attractive industry right now (even for short-term gains). A biz colleague has over 100 transactions closed YTD (still a quarter to go), each with a average net of $50k, and an average turn-around (DOM) of 27 days. Do the math. If you are looking at RE for a primary residence, it's a no-brainer right now IMO (all factors considered, and especially if you need a loan).

aigel · aigel's Garage