If you had $5000 cash to invest

[LockLow34]

What investment opportunities would you look at?

[JaysonWeberFCP]

In the stock Market, GM and Ford are about to hit Island-Bottom. So there really good to pick up right now, Depends how much you want to diversify, But depending on your age you should throw 4k into a Roth IRA if you don't have one set up already.

[lu_hawk]

#1 rule is don't listen to other peoples stock tips, ever. it never ceases to amaze me that human nature is such that someone will thoroughly research a $500 TV before they buy it, but will put a significant portion of their net worth into a stock just because someone told them to.

best way to invest that cash is to put it in a money market and in the meantime buy some books and learn as much as you possibly can before you even think about buying a stock.

[natedogg]

Index fund. Let me repeat. Index fund. 80% of mutual funds fail to outperform the broad market.

Index fund.

When you get some play money, you can dabble in stocks. Otherwise.... index fund.

Did I mention index funds?

natedogg

[RunDownHouse]

If I didn't need it for at least 5 years, an S&P fund. If there was a good chance I needed it before that, a money market fund or something similar with less return and less risk.

[RunDownHouse]

Oh, and I'd stay the hell away from GM. There's a reason they are tanking.

[gvibes]

[ QUOTE ]
If I didn't need it for at least 5 years, an S&P fund. If there was a good chance I needed it before that, a money market fund or something similar with less return and less risk.

[/ QUOTE ]

I think that "5" number should be more like "30".

Vanguard has a short-term bond fund that you can write checks out ot. Better returns than savings, but still available at a moments notice.

[RunDownHouse]

Well, I kind of agree. I just assume from the typical 2+2 demographic that he's young, has a decent income now, and an income that should be expected to increase pretty decently over the next 5-10 years, so he should have a fairly high risk tolerance. As a default I'd put the years at 10, but its pretty individualized.

[MonarchDon]

Look at these spy, dia, qqq and many others. Also join this club for $12.00 per month www.investors-club.com (http://www.investors-club.com)

[adios]

FWIW I don't like the money market fund idea.

[scalf]

/images/graemlins/grin.gif..put it on back line of any dice table of major resort 28 min after big show lets out...

gl

/images/graemlins/wink.gif /images/graemlins/smile.gif /images/graemlins/diamond.gif

[Maulik]

[ QUOTE ]
Index fund. Let me repeat. Index fund. 80% of mutual funds fail to outperform the broad market.

Index fund.

When you get some play money, you can dabble in stocks. Otherwise.... index fund.

Did I mention index funds?

natedogg

[/ QUOTE ]

did he mention index funds?

if he didn't you should check out the S&P500.

[ScottTheFish]

Investing in indiviual stocks is for gamb000loers. Index Funds are boring, unsophisticated, and absolutely great long term investments.

[SQUi5HiiFiSH]

Post deleted by Mat Sklansky

[shemp]

[ QUOTE ]
What investment opportunities would you look at?

[/ QUOTE ]

Two chicks at the same time.

[Ray Zee]

if you are not planning on moving in the next two years look at owning a home as your best investment. anyone that questions that isnt likely to understand living, taxes,peace of mind, or leverage.

[arod4276]

Someone please tell me WTF is studiotraffic? arod4276

[SQUi5HiiFiSH]

Post deleted by Mat Sklansky

[geo8o2]

Studiotraffic has been open for around 2 years now. When you make a free account, your account comes with $10 free. You can then upgrade your account with as much as $15,000, and every single day you earn at least 100 points on the automatic traffic exchange (no clicking required), you qualify for 1% of your account upgrade level. That adds up to 30% or 31% per month which is amazing. If you upgraded your account to $10,000, that would be $3000 every month assuming you remembered to surf every day.

check the classifieds section for link

[LockLow34]

Some more info. The $5000 cash will be in addition to the maximum contribution I can make into an IRA. The cash comes from a cash-out refinance of my home. What I'm looking for is something with a bit of risk, perhaps a business opportunity or something along those lines. Or I might speculate on some land. Index funds aren't out of the question though.

Ray Zee, your comments are very well founded. My home has appreciated 150% in just under 6 years. In addition to the investments, I'm purchasing a car and funding my bankroll (I'll have a real bankroll for the first time ever).

[siegfriedandroy]

I am young and stupid so here are my questions.

1) What is an index fund?

2) Adios- why would you not recommend mm funds?

3) I have about 5k to play with as well- better to pursue low-mid level texas hold 'em, bonus hustle, etc. (assuming I am pretty good) or to pursue alternative investment routes such as the ones discussed in this thread? Hec, maybe Ill just throw it all into Ford!

4) How do you buy a house with 5k? Also, I was reading that book by the Japanese guy who does the Rich Dad, Poor Dad, and I believe his rich dad says that owning a house is not really your greatest asset, but is instead a liability. Why does he say this, and Ray Zee how would you respond? Can I buy a house anywhere in the US for 5k?

5) blackjack, poker or the lotto?

[Indiana]

Two chicks at the same time is a decent investment...Checking out my boxing picks in the sportsbetting forum even better...But if you wanna turn that 5K into 50K in less than 5 years, become intimate with a low priced stock and get very familiar with its seasonal fluctuations...Right now HEC is about the best candidate for turning your money big...Its an oil company with plenty of cash and lots of future opportunities...Its trading @ .42 today...I am always on the lookout for these types of companies that trade cheap and have almost no chance for bankrupcy. Remember NT (nortel)??? I knew that the canadian government would never allow it to go under, picked it up @ .45 in 2002, sold it for $8 a year and a half later....

Easy $, Indiana

[admo415]

did you buy this stock? If so, then tell me why it lost so much money in 2005 and why that is ok.

[Indiana]

Lost?? Apparently you aren't reading my posts carefully or you don't follow the market...I have made over 60% already this year on this stock. Bought in @ .4 sold @ .57 and rebought again and sold again...I am back in again @ .4 25K$$ and it hit .44 yesterday...

Indiana

[admo415]

By lost money, I do not mean the stock went down, I mean the company lost alot of money during 05, according to the 10-Q. Also, why is there no chance for bankrupcy and also why is this the "season" to buy this particular stock?

[Indiana]

Hey look at HEC today...its up 12.5% from where I recomended it a week ago...See???EASY $$$$$$

Indiana

[admo415]

All I am trying to understand, is your thinking behind the purchasing of this stock...like why it cannot fail

[Indiana]

I am lazy so I'll be brief...This company has over 12 million cash, tons of oil fields yet to be dug, and a lot of their oil comes from local sources....In addition, revenues are growing, cash is growing, not to mention the rising demand for oil in China...HEC is free $$ period...I also have models that predict its fluctuation in price...that is how i am making $$ on it...face it, how much lower than .4 will it go?? I have spoken to the financial reps of the company and they feel strongly that buyer boycott of this stock is responsible for the low price and nothing else...this is changing and the stock will eventually go much higher...Believe me, I have been trading companies like this for years and this is one of VERY few that are guarantees...Did I mention that its already on the AMEX with avg daily volumes over 1 million? AMEX stocks are rarely delisted, so that aint a threat like it is for most NASDAQ and NYSE stocks...

Indiana

[michiganfan9]

I agree with jayson. Roth IRA great tax free ira account. GM has hit bottom and his undervalued currently. I'm also looking at AZ to buy soon. Currently the biggest profit gainers in my portfolio are csco and intc.