@ MikeCF. If you are already that liquid and green and have 0 financial knowledge I would advise you to run a portfolio as such.
20% Cash position in multiple currencies
30% peer lending on aforementioned website (http://www.lendingclub.com). The reason i push that site so much is because you're basically acting as a bank lending to individuals. This means rates and returns on that are gonna get squeezed over time so i would rather have capital in there before it starts getting lower. No I do not work for them.
This last part will piss off the world is ending type people, but currently as of today I would use the other 50% as 40% stocks and 10% bonds. The reason is long term bonds have gotten expensive in my view, the returns are less than 2% for a 10yr bond so being heavy in here means u are losing money... I really dont know why anyone would ever bu them at this point.
In terms of specific stocks, unfortunately i am not going to straight give names because that might give away who i am but I can give you some ideas to help you out.
1. Say you believe in real estate... Only the clinically insane believe the only way to profit is to buy a home. You can basically buy into sets of mortgages yourself example: ticker REM.
2. Say you believe the "social networking story" and when Facebook goes public around may you believe tech will do well. Then you buy up the NASDAQ at the minimum because its 90% tech companies. There are also multiple companies with private positions in the stock already. Just google Facebook private investors etc. and you can find multiple ways to play this. There is a reason Goldman Sachs is not on the cover and it's because they are conflicted and have a position in here already.
3. Cyclical stocks. Consumer type companies tend to roll very much in the same fashion over the course of a year look at ANF (Abercrombie's) chart over the course of any year and u'll start to see what i mean.
@ CGS. I would only be looking at HF's when i had low knowledge and and was much more green than a mil, prob around 10+ because then its a diversification play. Then again if i had that kinda coin i would probably just call it quits and live off 2% risk free returns and have the time of my life!
@phoenix. Your post is dead right, slightly cynical in the sense that picking the right fund is possible though because u need to know who u're giving ur cash to and what kinda strategy is being run. Generally though, yes correct avoid it unless super green. I am no where near that level of $$$ but would be an option once u hit 8 digits.
20% Cash position in multiple currencies
30% peer lending on aforementioned website (http://www.lendingclub.com). The reason i push that site so much is because you're basically acting as a bank lending to individuals. This means rates and returns on that are gonna get squeezed over time so i would rather have capital in there before it starts getting lower. No I do not work for them.
This last part will piss off the world is ending type people, but currently as of today I would use the other 50% as 40% stocks and 10% bonds. The reason is long term bonds have gotten expensive in my view, the returns are less than 2% for a 10yr bond so being heavy in here means u are losing money... I really dont know why anyone would ever bu them at this point.
In terms of specific stocks, unfortunately i am not going to straight give names because that might give away who i am but I can give you some ideas to help you out.
1. Say you believe in real estate... Only the clinically insane believe the only way to profit is to buy a home. You can basically buy into sets of mortgages yourself example: ticker REM.
2. Say you believe the "social networking story" and when Facebook goes public around may you believe tech will do well. Then you buy up the NASDAQ at the minimum because its 90% tech companies. There are also multiple companies with private positions in the stock already. Just google Facebook private investors etc. and you can find multiple ways to play this. There is a reason Goldman Sachs is not on the cover and it's because they are conflicted and have a position in here already.
3. Cyclical stocks. Consumer type companies tend to roll very much in the same fashion over the course of a year look at ANF (Abercrombie's) chart over the course of any year and u'll start to see what i mean.
@ CGS. I would only be looking at HF's when i had low knowledge and and was much more green than a mil, prob around 10+ because then its a diversification play. Then again if i had that kinda coin i would probably just call it quits and live off 2% risk free returns and have the time of my life!
@phoenix. Your post is dead right, slightly cynical in the sense that picking the right fund is possible though because u need to know who u're giving ur cash to and what kinda strategy is being run. Generally though, yes correct avoid it unless super green. I am no where near that level of $$$ but would be an option once u hit 8 digits.