Take $10,000........................and?

[Mega]

Invest in?
Short in?
?

Your thoughts people, if you had a spare $10,000 where would you put it?
Mike

[Jim Nickerson]

Re: Take $10,000........................and?

Invest in?
Short in?
?

Your thoughts people, if you had a spare $10,000 where would you put it?
Mike

Sit on it.

[sadsack]

Re: Take $10,000........................and?

Seedcorn for your American bride purchase?

[Redwoods]

Re: Take $10,000........................and?

Prudent Bear Fund (BEARX)

[kingcopper]

Re: Take $10,000........................and?

I'd wait till the end of February 2009 and then short any and all corporate bonds!;)

[Atlas]

Re: Take $10,000........................and?

Whenever the Dow hits about 9300 I would buy double inverse short ETF's until we reach around 8300, sell and repeat.

[Techdread]

Re: Take $10,000........................and?

Buy lots of Silver

[jtabeb]

Re: Take $10,000........................and?

Whenever the Dow hits about 9300 I would buy double inverse short ETF's until we reach around 8300, sell and repeat.

Physical Gold and Silver (if you can get any!!!!!)

[brokerknight]

Re: Take $10,000........................and?

Start a business.

Make sure it's as recession proof as possible (gourmet coffee stand = probably a bad idea, even if you make the best cup of coffee in the universe) and takes the current conditions of your region's economy into consideration if your business requires a physical presence.

I've started two businesses for less than $10k each:

1) A credit repair firm, that has helped hundreds of people legally increase their credit scores (see the Credit Repair Organizations Act or CROA, the Fair Credit Reporting Act or FCRA and the Fair Debt Collections Practices Act, all federal laws that make credit repair legal).

2) A loan modification firm which allows lenders and "upside down" borrowers (those who owe more on their homes than they are worth) to negotiate acceptable loan terms for both parties when a borrower would otherwise default, resulting in a foreclosure.

Whenever I have money sitting around, at any point in my life from this point forward, I will start a business. Why trust business decisions to others and hope that they run their businesses correctly (this is called stock ownership)?

I have plans to start three more businesses in the next few years (time permitting) and two of these will be able to be started for less than $10k. The other will only cost about $25k to get going, and should make all real estate transactions more efficient to close in the future.

The only reason I would buy stock is if a company is significantly undervalued and oversold. One good example is FRO (Frontline) when their price dipped to $25 about a month ago. They have a $12 dividend, a 36% yield, a 2.9 PE Ratio, and a 1y Target Est. around $50. Even if this drops to $38 you're looking at huge value - and more importantly, you don't have to do any work to earn money this way. This fits into Poom investment strategy as the combination of inflationary pressures and a declining USD will push oil prices (at a minimum) over $100 before the end of 2009, if a war or other geopolitical tension does not cause a larger increase in prices first.

Another good buy (soon) will be TYC, the owners of ADT Security and other safety and security companies worldwide. Because break-ins and crime in general increase during a recession security is a good business to be in during a recession. Stock is $20/share now, near 25 year lows, and 1y Target Est. is $30/share. This target may drop, but again, but PE ratio is under 8, and yield is a tidy 4%.

You'll have to be VERY selective to make a respectable profit on stocks over the next five years, unless you're insider trading, which negates the respectable aspect altogether - and may land you a stint in the joint likely to be less cozy than Martha Stewart's stay.

So take your $10k, find a way to improve somebody's day-to-day life, put a business model together, and your ROI will be as high as the product of your ingenuity, hard work and serendipity combine to yield.

[xtronics]

Re: Take $10,000........................and?

Invest in?
Short in?
?

Your thoughts people, if you had a spare $10,000 where would you put it?
Mike

If not in PM or other real stuff - and if you are comfortable with TBT, RJA, SRS.

SRS hedges RJA and TBT a bit...

[goadam1]

Re: Take $10,000........................and?

the best investments I have ever made have been in my business. I would probably buy some equipment. Making stuff for profit blows away buying pieces of paper or little bits of metal. Forever.

[xtronics]

Re: Take $10,000........................and?

the best investments I have ever made have been in my business. I would probably buy some equipment. Making stuff for profit blows away buying pieces of paper or little bits of metal. Forever.

Yes, not a bad time to invest in stuff - inventory - capacity - stuff to sell when others need to borrow and can't.

Better than any fund...

[sn1p3r]

Re: Take $10,000........................and?

Check out the "Alpha Strategy"

http://www.google.com/url?sa=t&sourc...bf_VR1CNt3LYCQ

[we_are_toast]

Re: Take $10,000........................and?

An AIR-X 400 watt wind generator to supplement my 1kw photovoltaic array.
2-3X8 vacuum tube thermal collectors to supplement my 4 flat plate thermal collectors. Sit on the leftover cash.

Somebody has to get this Alt-e bubble started.

[K Carlson]

Re: Take $10,000........................and?

Pay down the principal on your home mortgage. That would mean a guaranteed return in the amount of your mortgage interest rate, as well as an early debt retirement. That would be useful in the event of a job loss, disability etc.