If you had $5000 what....?

Question

if you had $5000 to spend on shares and stocks what ones would you purchase??

Answer 1

The question is if you had to 50k to spend on stocks, so I'm not going to get into the alternatives. So if you had to do it or die, I would short sale or option against the real estate market now. The homebuilders will get killed atleast another 25% by next year. The upside of the cycle for those stocks is usually in the Summer, sales move even less in the winter months. If you don't know how to short a stock, do some research, most investors play both sides of the market. If you learn the options game then that's a much safer way to play this side of the market agains a potential reversal. I'm pretty confident by that the RE market has just started to crumble. 1 trillion dollars worth of ARM mtg's go variable next year, also. So, Buy when you feel good about a stock, short when you feel bad about one. Here's a couple, MDC regional home builder highly leveraged in the most inflated markets, also smaller player. CALC, they're only in CA, they're going to get killed as CA will get hit the hardest of any region, worst than FL. Also, most are 30-40% off of their hi's, this stock has only been hit 17% so far, and over 50% of the companies value is one piece of land so, if that project doesn't yield the income , their really screwed. Also, rember during the last bust early 90's, 7 publicly traded builder went BK. Lender's will get hit bad too, LEND, FMT, regional subprime lenders. Also, legislation is being put in place to tighten guidlines on these unique loan products that have recently hit the market since the boom. That will kill some of their niches and hence, revenue. Oil stocks may slide back also, but too many int'l factors to advise now. Don't go tech, yet... With economy in possible recession, spending may stop in the tech region. I'd go with big staples on the buy side. Altria, P & G, etc., healthcare may rebound also, but other than that the market has no idea of what the next leader will be. You missed the Oil and Real Estate , but you can make just as much money on the slide. Also, with 5k, You may want to split purchase in to 3-5 different investments to minimize risk a bit.

Answer 2

None, thats not enough money to invest in stocks.

Answer 3

I wouldn't invest those in stocks

Answer 4

forget stocks, go with mutual funds for safety sake.

if you had to go into stocks. stay away from GOOG, or YHOO, or any other internet stock.

Answer 5

I would invest in good time in Caribbean

Answer 6

i have way more than that invested in shares and im not telling its a secret