Where is the best place to invest when the almighty is as low as it is?

Question

I hear a lot of arguments.

A lot of people have been saying SP500 or look for falling stocks of major corps.

When I say falling stocks I mean when its pretty clear they are as low as they will go seasonally.

Answer 1

At the moment, a money market fund looks pretty good. You should be able to get pretty close to 5% with almost no risk. Nobody knows what the stock market is going to do in the next few months. Personally, I think we may have reached a top in the economic cycle.

Answer 2

I assume you have capital...?

Split this into pots, not necessarily all the same size mind.

Dividends:
Banks - were steady, but credit crunch may hit profits, but dividends are good.
Mining and Metals - world demand is hot, hot, hot - should be a good bet for long term earnings again.

Security:
Interest rates can be good if you look to lock in. If you want a banker that is safe (including from you) go for long term notice high interest rates (check for overseas investing issues)
Gold is king now, did you not hear... the dollar is so weak that is where some are going.

Falling Stock of the biggies:
Little pot here I reckon unless you have a real hunch. Check our Northern Rock and Marconi both looked a good bet as they fell but the stock holders of the former are holding on now for a miracle and those of the later got nothing.
Better to look for mediums picking up several points and jump on. then jump off!!!

You in the UK? ISAs.

Offside tip? Oil, prices keep going up... in the US? find a well down Texas or Oki that someone will sell that produces a barrel or so a day and see how long it will take to recoup then go black (sorry, no pun meant).

No guarantees... maybe the bank is the best place... hope you do well, but mind the saying about eggs in one basket!

Play poker? Loadsa on line poker games, if you're a man with time and a good sense of how people play you can get good returns.

In all of this the word has to be RESEARCH.

Good Luck

Answer 3

I would be cautious of expensive commodites: wheat, corn, oil and gold. These are looking to fall. I would also look to avoid Ethanol Stocks.
The USD is making a slow comeback, but its not enough to look at one currency, as you need to look at the global market. The Euro will depreciate as the USD drops. Reason being is that there is a threshold of pain that the Euro can endore against a falling dollar, generally that point is around 1.50 USD to the Euro. This makes an export heavy Europe suffer with deminished sales to the US. So as the dollar drops, look to the concerns of Europe. Also, the GBP is in for a rough first part of the year. My money is on the depreciation of the GBP to the JPY.
As for equities, I would look to certain sectors that are poised to be resilent during this coming economic cycle. Google is debt free with billions in cash on hand. They will be a good buy for quite some time. The energy sector and natural resources are poised to do well also, look at SLB.
If you are looking into buying on the real cheap, they are still in that period, as the ppb on oil has been pretty hard on them. Energy analysts are anticipating a drop in the ppb that will span the next couple of years. Since these companies have factored the high costs into their projections, the drop in the ppb will definitely have a positive surprise for those stocks.
The dollar is still the major currency of trade, and countries are still trying to stockpile it into their reserves. This will cushion the fall, but the dollar's decline will have ramifications all over the globe...much like it is now. So i would keep in mind that you cannot escape the dollar...its literally everywhere, and nearly every emerging market has their currency either pegged to the dollar or they are hoarding reserves...or both...
so think big picture and long term if you a looking to capitalize on its weak strength.

hope this helped.

Answer 4

No expert but I have two cents. Above gave excellent advise.
The market is on a plateau that is about 2 years longer than usual high and should plummet soon. Stay out of risky buys.

One I am looking at is Google is developing alternative energy. Wind machines at a higher elevation & solar ...
their stocks? Apple also solid. Those at all time lows can go lower if we crash. Many banks are being bought out by the Saudi's like CitiCorp. U need some research on a trend if u have money to play. Environmental issues are tops now. Just my uninformed ideas I thought I would say :) Merry Christmas friend!

Answer 5

BRIC ETF Brazil Russia India and China. EEB return this over 50%

Answer 6

Gold or Euros, the greenback is finished.

Many are in denial but the USA is in recession just look at the mortgage market.

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Answer 7

i think after the traditional santa clauss rally stocks will drop.
keep your money in a money market fund and then make your move after the market drops more.

Answer 8

unless you are prepared to do it yourself the sharemarket is dangerous --- if you are prepared to do it yourself and i mean monitor daily and ignore the "expert" opinions -- only buy shares that are rising then you can do very well --- if you are not prepared to do that then property is a very good alternative (not trusts etc the actual property with a very good property manager) --- have fun

Answer 9

Keep an eye out for hydrogen fuel cells. for reals.

Answer 10

we don't know your overall financial needs or investment profile so it's impossible to answer this.

age, income, disposable income, risk-aversion (or not), how far from retirement, etc are all factors that would be taken into account