H
Hydrogen
Guest
Casino's are a great way to invest. Not that much different from stocks.
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Financial Advice
- Thread starter Copper1212
- Start date
cacruden
Senior Member
Yes - for some reason some people seem to be recommending that this person go from Savings Bonds to Stocks -- maybe even venture ones.... quite a large increase in risk. Whatever you invest in -- remember that you still should be able to sleep at night.
Options: (increasing in Risk)
- Savings Bonds
- GICs/Term Deposits
- Equity Linked GICs (basically your risk is limited to the interest, but if the markets go up - you have a little more of an upside).
- Mutual Funds (low risk to high risk)
- ETF - Exchange Traded Funds (buying into a whole portfolio of stocks - typically very low admin costs)
- Stocks
- Options (very risky - often become worthless by themselves)
I would recommend if you are looking for long term investing - that you stay away from individual stocks (and above) - $16,000 is not enough to really be able to diversify and lower your risk that way.
Options: (increasing in Risk)
- Savings Bonds
- GICs/Term Deposits
- Equity Linked GICs (basically your risk is limited to the interest, but if the markets go up - you have a little more of an upside).
- Mutual Funds (low risk to high risk)
- ETF - Exchange Traded Funds (buying into a whole portfolio of stocks - typically very low admin costs)
- Stocks
- Options (very risky - often become worthless by themselves)
I would recommend if you are looking for long term investing - that you stay away from individual stocks (and above) - $16,000 is not enough to really be able to diversify and lower your risk that way.
urbandreamer
recession proof
Oh, well I'd put the $16k in only one stock--GRW.v or BVT.v, both way undervalued venture mining stocks (gold and uranium), wait up to one year and get a triple or greater out of each (both are trading under 6.5 cents, both often go to .30+.) But hey, I'm the kind of guy that bets $50k on poker games....and wins enough times to keep the addiction going.
afransen
Senior Member
Expected return is positive in the market and negative at a casino. Pretty big difference to me. Managing risk in a casino only allows you to play a little longer.
H
Hydrogen
Guest
It was humour.
I own stocks.
I own stocks.
afransen
Senior Member
Sorry, that was dry to the point of sounding unintelligent, no offense to you. Lot's of people without much regard for reality have been crawling out of the woodwork on Canadian discussion forums, gearing up for Spinfest '08.
cacruden
Senior Member
I always expect to walk out of a casino with less than I walk in, but fortunately that rarely happens. When I was working in San Diego for a year - I went out to the Casino's 11 times (one of the people I worked with kept wanting to go), and walked out of the casino 9 of those times with more money than I walked in.... better than my results from investing
Secret Agent
New Member
I'm in a somewhat similar situation. I, however have a lot more and it's sitting in a savings account. The stock market looks real inticing at the moment and it would appear that it's a perfect opportunity to jump on board.
Unfortunately, I know very little of stocks and have very little faith and belief in the system. You hear of so much corruption and money laundering.
I'll probably stick with Real Estate if I'm looking to make a quick buck.
Unfortunately, I know very little of stocks and have very little faith and belief in the system. You hear of so much corruption and money laundering.
I'll probably stick with Real Estate if I'm looking to make a quick buck.
afransen
Senior Member
The market is definitely looking like a value proposition at the moment.
To lower your risk I recommend that you make a series of purchases over a period of time to avoid market timing risk. Don't want to be the guy who bought Nortel for $50 because it couldn't go any lower, before it went down to 65 cents. I would avoid putting all your eggs in the TSX. It is heavily weighted in resources/commodities and financials, and while those have shed a lot of value lately, it's risky to expose yourself so much to one industry.
If you don't want to pick stocks and you're looking to invest for the medium to long term, look into index funds, or as someone else suggested, index ETFs (exchange traded funds). These options earn you a return without fund managers taking a couple or three percentage points off the top for themselves, and follow the market, which tends to outperform other mutual funds on average anyway. If you seek the advice of a financial planner, treat them like they are trying to steal your money--double check everything they say, and ask for second opinions. Many are working mainly to earn commissions. Index funds/ETFs also let you 'set it and forget it' if you don't want to follow your portfolio on a daily basis.
To lower your risk I recommend that you make a series of purchases over a period of time to avoid market timing risk. Don't want to be the guy who bought Nortel for $50 because it couldn't go any lower, before it went down to 65 cents. I would avoid putting all your eggs in the TSX. It is heavily weighted in resources/commodities and financials, and while those have shed a lot of value lately, it's risky to expose yourself so much to one industry.
If you don't want to pick stocks and you're looking to invest for the medium to long term, look into index funds, or as someone else suggested, index ETFs (exchange traded funds). These options earn you a return without fund managers taking a couple or three percentage points off the top for themselves, and follow the market, which tends to outperform other mutual funds on average anyway. If you seek the advice of a financial planner, treat them like they are trying to steal your money--double check everything they say, and ask for second opinions. Many are working mainly to earn commissions. Index funds/ETFs also let you 'set it and forget it' if you don't want to follow your portfolio on a daily basis.
Therion
Senior Member
If you have no idea about stocks, don't get into the stock market. People who trade stocks for a living have been losing their shirts in the current market environment. Read some books first, and get familiar with how the market operates, the basics of fundamental and technical analysis etc. Start with this one:
How to Make Money in Stocks - William O'Neil
How to Make Money in Stocks - William O'Neil
androiduk
Senior Member
Not everyone's losing their shirts, just the gamblers. Some of my stocks are up and some are down but they all still keep paying me my dividends every 3 months.