These ETF's with double or triple exposure aren't that great. They lose value over the long term.
Where to invest these days?
- Thread starter InTheBum
- Start date
My crush in the long term besides Brazil's oil company Petrobras, which I feel will soon become one of the market's biggest oil companies with its vast offshore reserves, will be Burlington Northern Santa Fe. Investment guru Warren Buffet wouldn't just sink $ 34 Billion or a major part of his investment fund in this railroad company for no apparent reason. Definitely a good bet on inflation as well. The railroad company's total trackage of about 50,000 miles is worth about $ 65 Billion.
Looking forward to the upcoming sequel to Wall Street, entitled " Money Never Sleeps " which is coming out before summer. Very much appropriate to the times but it doesn't include the subprime mess though. The Michael Douglas movie that inspired the lives of lots of investment bankers.
Looking forward to the upcoming sequel to Wall Street, entitled " Money Never Sleeps " which is coming out before summer. Very much appropriate to the times but it doesn't include the subprime mess though. The Michael Douglas movie that inspired the lives of lots of investment bankers.
I just learned Citibank is now reserving the right to require 7 days notice before allowing a customer to withdraw their money. That's not a good sign of the health of American banks. http://www.businessinsider.com/citigroup-warns-customers-it-may-refuse-to-allow-withdrawals-2010-2
At first glance, the price of gold is about 10% down from its recent high and most major gold stocks are down about 25%. Not so attractive for short term players. However, I'm still very bullish about gold's upward momentum in the long term. First of all, the Treasury is printing non-stop 24/7 which means inflation. Second, consumer spending is down - interest rates will remain low. And lastly, its US Election time come November 2010 where about 30 plus Senate seats are up for grabs, controlled by the Democrats 59/41. Democrats can't afford more upsets like the recent one in Massachusetts. So they gotta create jobs and that means a weaker greenback to make its exports attractive which will result in more local production and will reciprocate to more jobs. And when that happens commodities like GOLD and OIL goes up.
One of my crushes in mining is Indophil Resources which is traded in Australia. There's just something about Down Under from hot girls to attractive mining companies. Indophil recently got a $ 500 Million takeover bid from China's largest gold mining company Zijin last month. Quite promising.
It is very important to diversify your investment. I divided my investment to real estate, many different bonds including tax free bonds, gold, few risky stocks which are less than 10% of my portfolio, and some cash.
Billionaire George Soros is already starting the gold buzz as well as other investment firms like Barclay and Goldman. Summertime looks interesting for this precious commodity. +1300
One of my favorite Democrat stocks, Boeing, looks quite promising. My favorite defense stock in the new administration. It recently submitted a $ 35 Billion bid to supply military tankers for the US Air Force a few days ago. Just had a dream they'll win it hands down over Airbus/Northrop.
Same as my Halliburton dreams in the Bush era.
Same as my Halliburton dreams in the Bush era.
My current holding are Enbridge which I bought at $42 a share some time back.The company is projecting 10% year over year growth.Knightsbridge tankers which I bought in before the crash at $26 a share,the stock is sitting at $16 ish right now and they just re-instated thier dividend at .30 cents and it will rise over the long term.The company currently has 6 double hulled ships and a very low debt ratio.All ships are contracted for time charters and the International Maritime Federation has mandated that ALL single hull ships are to be mothballed by the end of 2010.These stocks I hold for the long term for the dividends.
Short term my largest holding is in Grand Cache Coal.The stock was at a high of $9 before the crash and bottomed out to .50 cents and is currently trading for $7.50 a share.In late 2009 the company got regulatory approval for a new surface mine which added 500,000 tonnes of production a year and was set to be operating very fast as the needed haul trucks/excavators for the new mine had been delivered before getting regulatory approval.Coaking/Metalurgical coal is going to be one of the hottest commodities in 2010 when China gets busy again.My target price is $9-10 a share.My other short term stock is Canadian Quantum Energy.They are involved in a shale gas play in the Utica formation,the first test well produced 500,000 CFD with 1 hydraulic fracture.The second well with 8 hydraulic fractures had an initial flow rate of 12 million CFD which levelled of at a steady 5 million CFD.They have 2 more wells to drill and if an average flow rate of 3 million CFD from all the wells can be achieved it will be considered a commercial success.The stock recently had a 1 day gain of 35% when the TSX opened,it has since declined mainly due to profit taking.I bought in at $1.60 and my target price is $4 though it would have been super sweet to have bought the stock when it was trading for .10 a share.
SR
good call on canadian quantum energy. i bought a whole bunch of shares of cqm @ $1.00 and sold them at $1.35 for an early profit after they released their sewell report...now i'm kicking myself after their pop to over $2.25. i'm planning on getting in again myself, but i think they'll correct to under $1.50...thats when i'll get back in. should be good long term though. good luck!
The said notice only pertained to their Texas clientele but was accidentally given to all their depositors. Could have been a perfect opportunity to short the stock.
There are good upwards prospects for CITIBANK as two of the biggest hedge fund managers in the planet namely George Soros and John Paulson bought half a billion CITI stocks among themselves last December. Plus, those so-called reserves in their balance sheet will just turn out into income this year. The joke in political circles in Latin America for decades is that if you don't want to experience a US military invasion, just keep on paying the interest to your loan to CITI.
Two other Democrat stocks that I like is Microsoft and Google. Of course GE has been the ultimate Democrat stock for decades. Microsoft has more than $ 30 Billion in cash in its balance sheet while Google has $ 22 Billion. A simple rise in interest rates after the November elections gives instant billions to both companies in income and that's already conservative. Doesn't count all the other companies they will be acquiring in the future.
Excellent post! This is what I am talking about...
I hold Transcanda...wish I bought Enbridge instead...
Grande Cache Coal...I hate buying stocks that have gone up so much, so I don't see myself jumping in. Don't you think China is busy now? $7.50 to 9 to 10 bucks a share aint much upside considering the stock went from 50 cents to 7.50 in the last year.
Before one knows where they should investment they have to understand what they own and why they own it. Step 1.
Step 2. Determine what your comfort zone is with respect to volitality, the time line you're going to need access to these funds
(ie a downpayment on a home has a different time line than do retirement funds)
Step 3. You may wish to determine how much you need. For example if it's for your retirement do you have a pension (indexed?) CPP, OAS, rental Property, business interests. etc)
These will all come into play, along with the amount you have available to invest on a regular basis. This should allow you to determine what rate of return you require
to meet your objectives. Some may need 10% some may need only 5%. If it's the latter one could invest in fairly safe investments and achieve their desired results, which
is a comfortable retirement. If one needs 10%, you'll either have to fall within this risk tolerance profile. (ie be comfortable with a heavy exposure to the stock market) or
be prepared to contribute more, or work longer.
Step 4 Construct a portfolio that reflects the outcome of this analysis. and if one simply wants only one suggestion and ignores all this, corporate bonds
within the context of a balanced portfolio would be my suggestion.
I'm personally not a big fan of the buy stock x and hope you hit a home run approach. That's more along the lines of gambling rather than investing.
Step 2. Determine what your comfort zone is with respect to volitality, the time line you're going to need access to these funds
(ie a downpayment on a home has a different time line than do retirement funds)
Step 3. You may wish to determine how much you need. For example if it's for your retirement do you have a pension (indexed?) CPP, OAS, rental Property, business interests. etc)
These will all come into play, along with the amount you have available to invest on a regular basis. This should allow you to determine what rate of return you require
to meet your objectives. Some may need 10% some may need only 5%. If it's the latter one could invest in fairly safe investments and achieve their desired results, which
is a comfortable retirement. If one needs 10%, you'll either have to fall within this risk tolerance profile. (ie be comfortable with a heavy exposure to the stock market) or
be prepared to contribute more, or work longer.
Step 4 Construct a portfolio that reflects the outcome of this analysis. and if one simply wants only one suggestion and ignores all this, corporate bonds
within the context of a balanced portfolio would be my suggestion.
I'm personally not a big fan of the buy stock x and hope you hit a home run approach. That's more along the lines of gambling rather than investing.
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Coking/Metalugical coal is going to be huge in 2010 as well as 2011.....most of the steel factories shut down/decreased production when the recession hit and the result will be higher coal prices.Grand Cache har risen dramitacally but so has Tech Resources....and the latter is facing problems with the expansion of it's Red Dog mine.The highest the stock has been historically was $15 ish a share and thats when coal prices were way down and they did not have the production they have now.There is still some upside to the stock IMO.
SR
Personally I would not touch GM stock....Ford on the other hand was the only domestic automaker that did not ask for govenment assistance and bailed themselves out.....currently Ford has market share for the BIG 3 and the companies stock price is on the rise.....if I had bought Ford stock on the bottom price I would rate it as a hold right now for the upside....if of course I had bought into it when it was at rock bottom.
SR
As predicted, the greenback game has started. Latest headlines states that the loonie is at a 6-month high and nearing parity against the greenback. Then US unemployment figures will decrease minimally. China will allow the Yuan to rise. It has no choice anyways since they are holding into US$ 1.7 Trillion and no country in the solar system will be able to absorb it. GOLD and OIL upside will just be starting. GOLD will go up first since its an election year. Gotta love George Soros and John Paulson!
