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Pooty
Joined: 15 Jun 2008
Location: Ela stin agalia mou
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 Posted: Tue Nov 25, 2008 1:38 pm Post subject: So you have 90 grand to invest in the stock market... |
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Where do you begin? You're an American with no previous experience investing in American stocks. Do you go through an online broker? You don't have time to fly back home to visit a brokerage, so you have to do everything from Korea.
Which stocks would you invest in today? Why? Etc.
Discuss, explain and educate me. |
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Thunndarr
Joined: 30 Sep 2003
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| Posted: Tue Nov 25, 2008 2:58 pm Post subject: |
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No-load index fund through Vanguard, there are a variety to choose from.
Why? Well, if you do some research, something like 90% of fund maanagers don't beat the S&P in a given year, and over the long term, even fewer. These people are professionals, and THEY can't beat the market. If they can't, you probably can't either. So get an index fund and don't worry about it. |
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D.D.
Joined: 29 May 2008
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| Posted: Tue Nov 25, 2008 3:58 pm Post subject: |
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| Buy a house. |
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khyber
Joined: 16 Jan 2003
Location: Compunction Junction
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| Posted: Tue Nov 25, 2008 4:07 pm Post subject: |
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Wait a few months and buy 3. |
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Pooty
Joined: 15 Jun 2008
Location: Ela stin agalia mou
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| Posted: Tue Nov 25, 2008 4:09 pm Post subject: |
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| Do no-loads cost more? I'm reading Vgaurds faqs right now... |
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sharkey
Joined: 12 Oct 2008
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| Posted: Tue Nov 25, 2008 6:58 pm Post subject: |
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| khyber wrote: |
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Wait a few months and buy 3. |
lol |
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crsandus
Joined: 05 Oct 2004
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| Posted: Tue Nov 25, 2008 9:02 pm Post subject: |
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| Thunndarr wrote: |
No-load index fund through Vanguard, there are a variety to choose from.
Why? Well, if you do some research, something like 90% of fund maanagers don't beat the S&P in a given year, and over the long term, even fewer. These people are professionals, and THEY can't beat the market. If they can't, you probably can't either. So get an index fund and don't worry about it. |
I second the Vanguard suggestion. I've been exposed to E-trade, Fidelity, Vanguard, and Scottrade. The first and last were for single stock purposes but if I had to do it all over again, I'd go with Vanguard and stick with them. |
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jvalmer
Joined: 06 Jun 2003
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| Posted: Tue Nov 25, 2008 9:28 pm Post subject: |
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| If I had 90k to invest, I'd put like 20k+ in Citibank. There is no way they'd let them fall and right now their stock is at $6. In 5+ years Citi will surely be back round the $40 dollar range. But, that's just what I'd do, all you experts can start calling me stupid and idiotic now... |
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crusher_of_heads
Joined: 23 Feb 2007
Location: kimbop and kimchi for kimberly!!!!
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| Posted: Wed Nov 26, 2008 6:00 am Post subject: |
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| Not 90k, but I profitted once already when Nortel took a beating-time to buy in yet again! |
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Beej
Joined: 05 Mar 2005
Location: Eungam Loop
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| Posted: Wed Nov 26, 2008 6:35 am Post subject: |
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| jvalmer wrote: |
| If I had 90k to invest, I'd put like 20k+ in Citibank. There is no way they'd let them fall and right now their stock is at $6. In 5+ years Citi will surely be back round the $40 dollar range. But, that's just what I'd do, all you experts can start calling me stupid and idiotic now... |
Or Citibank along with other big failing banks can be nationalized and stock holders will lose everything. A very likely scenario. |
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Join Me
Joined: 14 Jan 2008
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| Posted: Wed Nov 26, 2008 7:05 am Post subject: |
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| Beej wrote: |
| jvalmer wrote: |
| If I had 90k to invest, I'd put like 20k+ in Citibank. There is no way they'd let them fall and right now their stock is at $6. In 5+ years Citi will surely be back round the $40 dollar range. But, that's just what I'd do, all you experts can start calling me stupid and idiotic now... |
Or Citibank along with other big failing banks can be nationalized and stock holders will lose everything. A very likely scenario. |
I am staying away from Citi Bank too. I also agree that they are in just too bad of shape even with government assistance to take a risk on. I think the bank that is going to come out on top is Bank of America. I put a chunk of cash into the stock market right before the election (my prediction that it was the bottom) and I am down 20%. Not worried though...a week ago I was down close to 30%. I bought 10 different stocks and the majority of them seem to be keeping pace with the rise and fall in the Dow. Based on this, I am assuming when the markets as a whole rises or falls my stocks will too. So far this strategy has been working. |
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I_Am_The_Kiwi
Joined: 10 Jun 2008
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| Posted: Wed Nov 26, 2008 6:02 pm Post subject: |
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| put it all down on the craps table at the casino.....least youll get a free drink. |
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Jandar
Joined: 11 Jun 2008
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EzeWong
Joined: 26 Mar 2008
Location: Seoul
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| Posted: Wed Nov 26, 2008 11:02 pm Post subject: |
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| Thunndarr wrote: |
No-load index fund through Vanguard, there are a variety to choose from.
Why? Well, if you do some research, something like 90% of fund maanagers don't beat the S&P in a given year, and over the long term, even fewer. These people are professionals, and THEY can't beat the market. If they can't, you probably can't either. So get an index fund and don't worry about it. |
As much as I've begun to think you were a total tosser, your information is correct and agreeable.
In fact, it's actually more than 90% of fund managers can't beat the market.
If I had 90,000 to invest I probably wouldn't invest it in stocks, personally I find any investment that you can't control on a real strict managerial level is exactly like gambling. There are no real educated guesses in the market as everything is determined by the emotions of the players (ie. investors). Stocks and funds are exactly like betting on what everyone else is betting. It's just one GIANT phsychological mind game. Not to mention stocks in secondary markets (ie. not primary ones like IPO's) are zero sum gain. Someone's winning, and someone's losing.
As for index funds... Well generally they are safe bets, but there are safer ones out there considering the current economic situation.
For example, in the secondary markets you're going to find that the price of the stock is a reflection of how people "feel" how much it's worth. If stock X has great returns and is doing very well, but everyone hates stock X and think it's crap, the price will reflect their emotions, not the actual returns (unless it's paying out dividends in which case it's much closer to reflecting the actual intrinsic value of the stock).
Someone mentioned real estate which has historically always been good investments with even better returns and generally inflation proof. However, we all know what's happening now in the real estate markets so I wouldn't bother. Plus any analysis based on previous gains is a flawed one. Personally, I believe the history of an investement has no bearing on it's future price (although many stock anyalsts will disagree with me including my cousin who works as a stockbroker on wall street... true story)
90,000 I'd start my own business in Korea. The best investment you can possibly make if you're smart enough and if you have the confidence to do so is start your own business or be a "angel investor". Find some poor sap who has a great business idea with no money, give him the start up captial, and you will be a major holder to what could become a giant company. Not to mention it's so rewarding if you have an entrprenurail spirit. Generally very risky but the rewards are high and the best part is... you can control it. (As you can tell, I like control)
As to the OP to answer your question straightforward. Myself being forced to invest in US stocks, I would choose recession proof stocks, such as common goods (Crest , Johnson and Johnson, Birds eye, etc.) This is a Warren Buffet strategy. Although now in a time of such recession, you see some analysts such as Tony Robinns suggesting grabbing up the big name players who have plummeted to the ground. You can pick em up for pennies and make a killing when the economy returns. Although, taking what Sue Orzman said the other night on CNN, be careful because these stocks you're looking at for pennies are also ones that have a high potential for hitting bankruptcy. America specific I would probably choose stocks that aren't anywhere vulnerable to the oil crisis we're facing or anything that might be dependent on technological changes. The boats shakey, you wanna choose a stock that is most buyoant.
Do you have 90,000 OP? Don't Invest in US stocks... :< |
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Thunndarr
Joined: 30 Sep 2003
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| Posted: Thu Nov 27, 2008 3:07 am Post subject: |
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| EzeWong wrote: |
As much as I've begun to think you were a total tosser, your information is correct and agreeable.
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Sorry, but people who defend child abusers (um, that's you) don't get the luxury of calling other people tossers.
And btw, "angel invester" is better known in the English speaking world as "venture capitalist." That'll be 50,000 won. |
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