Best investments???

Question

Given the state of the economy what are the best investments? Lets assume a time horizon of 2-4 years; not overly risky but 10% or better ROI would be great.

My initial thoughts:

Housing prices historically indicate that they should go back up right? (how to invest to capitalize in this area? REITS? Mutuals?

Oil prices will likely drop- bet the short?

Other energy areas e.g., Natural Gas?

Thanks!

Answer 1

Diversifying is the "best" overall and long term. Anything else introduces more risk meaning some choices will produce above average returns while others will lose.

If you look at historical figures for home prices in relation to incomes it suggests housing is still way overpriced. You can't assume they will go back up like they did. Inflation will raise prices in "dollars" but not in real terms.

Historically for like the last 100 years home prices averaged between 3-4 times the median income. Nationally a couple of years ago we were at 6 times household income and places like in Calif., Nev., and Florida they were at 10 times the income.

To bring it back to historical norms, nationally home prices need to fall by 33%. We are down about 15%.

I don't think people can afford the kind of luxury in the homes they have built. $10k worth of granite countertops instead of $1k of formica? Separate offices in the home? Jetted tubs? Steam showers? A media room? Three car garages instead of a one car carport? 15 foot ceilings and then they are shocked at the cost to heat them? Wood floors everywhere? That is high maintenace costs too. The average square footage has almost doubled.

The wages the majority make do NOT support that much luxury. I think some big changes are coming. They could only justify such high priced homes as long they continued to increase in value. Now they aren't.

Answer 2

invest some knowledge hardwork and technical thinkings

Answer 3

Invest in ETF's : ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% - 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read.

ETFs have a lower turnover than most mutual funds. As ETFs do not require active management and hold nearly a steady stream of stocks, there is hardly any portfolio turnover.

http://debts-to-wealth.com/category/Why-...

Answer 4

How much you like to invest ? invest the same in my account :-)

Answer 5

There is no one best investment. IMO, investing in myself and own business is best.

I am an active trader in the finance markets, but do not see myself as a long term investor, but as a business that trades these instruments for profit.

- jim http://jsforex.blogspot.com