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Individual Stocks, Bonds, and Mutual Funds: The Safest Investment?

by kevin timothy
14 replies
  • OFF TOPIC
    • |
For those of you brave enough to leave the confinements
of internet marketing and test the waters of these
investments, which do you think is the safest?

If you have experience in either the stock market,
bond market, or funds, please share your expertise.
Do you not even bother with these ways to make
your money work for you? If so, share also.

Thank you and your responses are greatly appreciated.
#bonds #investing #investment advice #stock market
  • Profile picture of the author Jason Kanigan
    Municipal bonds with proven-to-be-safe cities.

    You avoid the market ups and downs and get your steady check.
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    • Profile picture of the author Horny Devil
      Banned
      Originally Posted by kevin timothy View Post


      The Safest Investment?

      Pitch-and-toss when the pub shuts. If you can't beat a load of drunks with their eyes in their kneecaps then you might as well put your investment in the Save The Whales collection tin.
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  • Profile picture of the author seasoned
    BONDS in the US now are a generally BAD investment! WHY? Because interest rates are ABSURDLY low! If the rates go up, you will NOT be able to sell the bond at the principle rate you paid. The market DEMANDS a higher rate! THAT means you sell at a LOSS! Bonds were made to be a SAFE investment to BUY AND HOLD when rates are HIGH! THAT way, you make a LOT of money AND, if rates fall, you can sell at a PREMIUM!

    STOCKS are fine, but put the wrong one and you can lose 100% in an instant. You want to buy companies that look worse than they are, or buy a basket of decent ones to spread the risk. The last technique is known as diversification. Most say that the money for stocks, that should be a portion of your investment, should be invested no more than 20% in any given stock.

    Mutual funds are actually a hybrid and often have stocks and/or bonds, and maybe derivatives or IOUs of a kind. You can get the gist of what they are in based on the name and the category, but read the prospectus also. BY LAW, they are supposed to offer you, and provide upon request, a prospectus. If you get a decent mutual fund, it will AUTOMATICALLY be diversified. That WAS the original point, after all. WATCH IT THOUGH! A SECTOR fund, for example, invests in a SECTOR(like bio technology). They often perform VERY WELL when they perform well, but the entire sector could plummet on one announcement. STILL, for the SECTOR, they ARE diversified.

    Steve
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  • Profile picture of the author overspool
    Risk needs to be spread around. The more diversified you are, generally, the lower risk your taking on. If you don't have time to follow the market, invest in mutual funds that have exposure to different asset classes. There is a lot more to it though. Munis have default risk, corporates have credit risk, and equity has all kinds of risk. Spread it out, compound your returns by reinvesting dividends.
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  • Profile picture of the author mlord10
    I'm a big fan of precious metals, but not "paper gold" such as ETFs. In these uncertain economic times, "safety" has to go hand in hand with preserving wealth, as opposed to shooting for huge gains.

    Muni bonds aren't bad, I'm just a fan of owning real, hard assets.
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  • Profile picture of the author yukon
    Banned
    Business that have a monopoly, example Baidu (BIDU).

    +800% growth since Google was first kicked out of China.
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    • Profile picture of the author myob
      Wait for the next recession to come around, then you can buy blue chip stocks for pennies on the dollar. It's been working like a charm since the 1930's.
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      • Profile picture of the author seasoned
        Originally Posted by myob View Post

        Wait for the next recession to come around, then you can buy blue chip stocks for pennies on the dollar. It's been working like a charm since the 1930's.
        Well,, we likely won't have long to wait, but what do you use for money?

        HECK, he politicians are ALREADY rich, what will the people do when they realize they have been lied to and are poorer than they ever imagined they would be, and the politicians have "golden parachutes
        "? OH, and DON'T FORGET! Most scenarios and history say they will have ADVANCED notice of the crashes!

        Steve
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        • Profile picture of the author myob
          Originally Posted by seasoned View Post

          Well,, we likely won't have long to wait, but what do you use for money?

          HECK, he politicians are ALREADY rich, what will the people do when they realize they have been lied to and are poorer than they ever imagined they would be, and the politicians have "golden parachutes
          "? OH, and DON'T FORGET! Most scenarios and history say they will have ADVANCED notice of the crashes!

          Steve
          If you really want to make money in the stock market, forget all that BS. The rules have drastically changed, as shown beginning in 2004. The market is totally dislocated from the news, technical indicators, and even the quality of underlying stocks. All you need to understand is fear and greed - buy on fear, doom and gloom, then dump when the good times roll. Stocks are approaching record highs, and contrarian investing rules now.
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    • Profile picture of the author kevin timothy
      Originally Posted by yukon View Post

      Business that have a monopoly, example Baidu (BIDU).

      +800% growth since Google was first kicked out of China.
      Great point! Baidu first popped up on my radar a few months ago. I was researching various mutual funds and one that focuses on international companies had Baidu holdings. I decent percentage of them.

      Although I'm not too big a fan if Chinese tech, the monopolizing nature of their internet makes Baidu for a very strong investment (I believe).

      Thanks...I like the variation of this response.
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  • Profile picture of the author candoit2
    Originally Posted by kevin timothy View Post

    For those of you brave enough to leave the confinements
    of internet marketing and test the waters of these
    investments, which do you think is the safest?

    If you have experience in either the stock market,
    bond market, or funds, please share your expertise.
    Do you not even bother with these ways to make
    your money work for you? If so, share also.

    Thank you and your responses are greatly appreciated.
    Read the book The Black Swan by Taleb. (Philosopher, Statistician, Trader, Author)

    Another book of his Fooled by Randomness will help as well.

    Aaron
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  • Profile picture of the author trader909
    to be fair most professional managed money is s*** to put it bluntly.

    over 95% of \hedge funds haven't even beat the stock market averages over he past 8 years and yet they charge high fees. It's mostly hot air.

    Most are simply marketing firms making heir money on the fees. Check he numbers, see for your-self.

    You could do a lot better for your-self. But, many people do not seem interested.
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  • Profile picture of the author trader909
    QIHU an YELP are better.

    best stock of 2013 is TSLA


    Great point! Baidu first popped up on my radar a few months ago. I was researching various mutual funds and one that focuses on international companies had Baidu holdings. I decent percentage of them.

    Although I'm not too big a fan if Chinese tech, the monopolizing nature of their internet makes Baidu for a very strong investment (I believe).

    Thanks...I like the variation of this response.
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