What is a good investment these days?

Property no longer being a money spinner, has anyone any ideas about what is a good investment these days? For those of us not in a position to emigrate/dash off abroad on business, I wonder is there some place here and now where you can actually make money with your savings. I remember the days when my house was making more than I was every week

Well, if you like bubbles, then emerging markets, China et al could run for another ten years -and make you a fortune- or it could all blow up next month. Such is the way with bubbles!

i bought iqe shares at 14p last year now at 50p

gold and silver

Scrambler, pick out a few companies to buy shares in - will take a bit of research / time but very worth it.

Range Resources (RRL on AIM) are a good oil/gas company with a diverse portfolio and a lot of imminent action. They have farmed out work to a smaller company called Red Emperor (RMP on ASX) if you want a more leveraged bet.

a good thread would be who is actually making money right now and roughly how?
not leveraged bets.

Oil exploration strikes me as highly speculative.

It fits the OP’s bill. They are high risk/high reward and great medium term companies to have in your portfolio if you have the appetite IMO. Range in particular has strong underlying production stage assets and good short and long term prospects on the horizon.

And don’t count paper profits. Selling high is far more difficult than buying low.


https://info-wars.org/wp-content/uploads/2011/01/silver_bars_bullion.jpg

Not casting any aspersions on those recommending particular shares here, but the interwebs is full of stock pumpers so do your own research on any tips you might get OP.

Might be worth taking a look at the thread on Agricultural land I have a few acres of bog I could let you have for the right price.

Does it have “development potential”?

Only in Mayo.

does anyone have a good link to a blog or the like where you can get information on how to start investing, from the beginning, for dummies ? :blush:

There are a few shares I’d like to invest in and I’m up for doing some research on other but don’t know how to get started
basic stuff like how to buy shares with the least transaction costs or where to find the best information on company performance ?

Being contrarian can be a worthwhile strategy. But you need to have lots of patience and a long investment horizon.

For instance buying Irish property in 2006 when it was a no-brainer was financial suicide, but buying it in 2013 by which time it will be financial suicide may turn out to be a no brainer.

This is what some experts think…

moneyweek.com/investment-advice/share-tips/share-tips-six-stocks-to-buy-now-52632

Be careful of gold. You’ve missed that boat. I’ve recently sold-down much of my precious metals exposure. I was never a gold bug and think it’s a boring and irrational asset class, but I had some as a sentiment hedge. Now that the price has run and lots of negative sentiment on currencies has been priced in, I decided it was time to cash up and reduce exposure back to my long term strategic allocation of 2.5%. Gold will go up further from here, but at some stage prices will pull back very strongly and a lot of the gold bugs will get caught. I’m still heavily invested in a long/short gold fund, but that particular fund will benefit from volatility and will hold-up when commodity prices come off. (I don’t count the long/short gold fund in my 2.5% to precious metals, BTW)

What’s your investment horizon? If you’re a long term investor, I’d recommend certain private market asset classes where returns are not overly driven by sentiment in listed equity markets, like US venture capital (this is going to be fantastic over the next decade), US/European mid-market private equity (also a great place to invest for the long term), certain project financed assets and leasing funds (aircraft and shipping leasing is a bit interesting), risk-controlled infrastructure development (I like US power funds), and defensive/structured infrastructure. I’m currently heavily overweight these types of assets.

I’m quite heavily underweight listed stocks, but am taking corporate exposure via credit bond funds. (I still have some private markets credit exposure, but want to get out of this when I can. In many countries banks are squeezing margins and the private markets debt funds can’t compete like they could a couple of years ago.) Slightly overweight government bonds, which I hold directly. Heavily overweight cash. I’ve recently added some good arbitrage funds with low market exposure.

My portfolio is much less liquid than it has been in the past. I think that taking illiquidity in private markets and balancing that with bigger cash holdings is a good approach at the moment.

Some of my rules (the first one isn’t so much a rule of investing, but it’s the most important):
1.Work hard, save well, live cheaply. Remember how great life was when you were a student? Live that life (within reason—don’t be parsimonious, but equally, don’t be a show-off with your money). I drive a 12 year old Mazda. My kids think that 50c is a lot of money.
2.Be a portfolio investor. Diversify your risks. Look at lots of different investment opportunities. Only ever take big bets with small sums.
3.Protect downside. Markets are not efficient, so be opportunistic. Buy cheaply and care a lot about your entry price into assets. Read the articles/books by the great value investors. If you see awesome value, ease-up on rule #2.
4.Don’t be in a rush. Take a long term view. All that stuff about ‘the markets are up 2 points in late trading’ is just bollocks.
5.Don’t borrow to consume. If you borrow to invest, keep gearing low and be careful. There’s already enough leverage embedded in many of the things you might invest in.
6.Think about the big picture. Use you time to think about asset allocation issues. All that stuff about ‘this bank stock is better than that bank stock’ is mostly background noise.
7.Use managed funds to implement in less efficient asset classes. Be passive/indexed in listed equities (most of the time).
8.If you’re investing in a fund, care a lot about your alignment of interest with the investment manager. Make sure they’re invested heavily personally (and, in private markets, not taking performance fees on marked-up assets).
9.Be curious and interested in investing. Do lots of your own research. Financial planers and accountants are good for tax planning, but mostly bad for investment advice.
10. Watch what government does. Policy changes can create some of the greatest opportunities.

I wouldn’t be doing a whole pile this week with Bernanke talking today about policy. The markets will be looking for any hints on QE3 as QE2 comes to an end in June. If they feel that the jobs numbers are stong enough to tighten monetary policy we could see the market rally take a 5% pull back over the next few months and settle a bit.
Personally I think there is a bit more room left in the inflation trade on precious metals in the medium term. ECB will probably raise rates on Thursday and the € will go into the $1.43s (most of this is already priced in) but this will move WTI up towards the €110 a barrel, Gold back up to the €1447 and silver could take out €40 an ounce.

If I was a newbie the first thing I would be doing is picking six different stocks and weighting them on risk levels and allocating cash on that basis. I’d also average in over the year unless the US talks about a loose policy in which case I’d get in sooner.
On thing about disverification is don’t just do it for the sake of it. Stay away from Tech at the mo and consumer spend. I’d stay towards commodities; Oil,Water, Silver (SLW seems one of the best), Sugar (CZZ maybe), Natgas through something like FTK (google Fracking).
If Tech has a pull back then look at AAPL at under €300.

BIG DISCLAIMER. I have a day job, it has nothing to do with investing. I’ve gained more than I’ve lost over the years but I’ve taken some pretty big haircuts on stupid investments. If you bet on what I suggested above and there was a big drop in oil due to MENA, Middle east peace, US tightening, then you’d lose a lot of money.
8) I still like Silver though in the long term and if it pulled back to $31 I’d probably take a large position in it.

Best advice to a newbie, read a lot and watch things like Squawk box or Fast Money on the CNBC website. Whilst FM is geared towards traders who jump in and out all the time its a great way to pick up the knowledge on how to compare companies, in terms of Earnings, Growth, different sectors. At the start you’ll be lost in jargon but the panel makes it light hearted and interesting to watch. Also if you ever come across clips of Cramer, keep the mouse rolling, Dice have proven to be more accurate than him. Enjoy it and don’t get too worked up about stuff. Check your shares once or twice a month unless a relevant news item could affect them. You would be amazed the amount of people who lose out because they look at shares on a daily basis and sell on the first 5% loss (also you can get hooked on it and then that’s gambling, buying in and out all the time, lining the pocket of your broker and not you). They will swing and the more volitile the bigger the fright you can get but if you are weighted correctly in the right industries than you can relax and let them do their thing.

Best of luck with it.

Good posts High Noon and FB2. Sound advice. I’m still comfortable with Silver. There may be a very significant pull back over the summer, but I think the weakness in FIAT currencies will continue well into 2013.
My 2 cents.

stellar post from High Noon; especially the bit about minding your money - and driving an old car.

if you currently save 100E a month bumping it up by 10% is a lot easier than finding a magic investment with 10% extra returns…

My advice is to look a the total return - after tax and fees.

Maximise your AVCs (Pension Contributions) - the tax benefit will give a risk free bump to your returns that most money managers will never achieve

Look at low cost index funds for maximum diversification. If anything looks to good to be true then it usually is.

Boring advice maybe but unlike most finacial advisors and interweb penny stock pickers I have no vested interest.

If you read one book read this
amazon.co.uk/Random-Walk-Dow … 0393062457

if you read two read this also

amazon.com/Intelligent-Inves … 145&sr=1-4