How to Invest ?

[ty.gregory]

[QUOTE=Delfin;653919]Hmmm....The S&P has returned an average of 3.38% over the last 10 years, while gold has returned 400% and silver 600%. Although it is true, gold doesn't produce anything, except wealth, and silver not much at all except a broad range of industrial products for which it is vital.


Well, gee, you're right about that... But arn't you supposed to buy low and sell high? Or is it the other way around...? I always get confused.

[smurphny]

I would suggest that anyone who has limited knowledge of investing stay completely away from spreads, futures, commodities, options and other sophisticated games such as these. If you want to screw around with options, buy the stock and write some COVERED calls. The instruments above are perfect ways to lose ALL your money very, very quickly. Never fall for the line of some "advisor" type wanting to invest your money in any of these things.

[97fxdwg]

BPT & ALSK both pay approximately 8% dividends. Just sayin'. I DON'T own them but a friend pointed them out when were were swapping stock market lies a couple of days ago.

[Zonker]

Originally Posted by smurphny

I would suggest that anyone who has limited knowledge of investing stay completely away from spreads, futures, commodities, options and other sophisticated games such as these. If you want to screw around with options, buy the stock and write some COVERED calls. The instruments above are perfect ways to lose ALL your money very, very quickly. Never fall for the line of some "advisor" type wanting to invest your money in any of these things.

Covered calls work in bullish environment only - there is no protection to the downside.

A (costless) collar is much better ... you have protection to the downside and your max gain is defined when you enter the trade. This is also very well suited for folks like sailors which want to "fire and forget". Typically one would use 1-2 year options (LEAPs) to setup such a "product". Gain to expect is up to 5ish% a year - may be there is someone around here who knows how to squeeze more gain out of it.

[Doodles]

As I've said before, I don't go to financial forums looking for advice regarding sailing/boats and I don't get my financial advice from a sailing forum.

[Capt Phil]

I believe avb3 has the correct read on the US economy which also holds true for Euro countries. Off shore investments out side these two spheres of financial exposure are preferable IMHO. Emerging markets like India, China and similarly situated markets are the best near and long term investment opportunities. Taking returns in euros or US $ is like guaranteeing a 5% loss every year which will get worse. There are many currencies which are not pegged to US $ or Euros that are reasonably inflation protected. Brazil is another market not to be ignored. As the world moves towards a basket of currencies for international trade, the US $ will survive but at a much reduced value in part based on the printing presses at the Fed running overtime. The Euro may well die a natural death as the bailout of over extended partners becomes impossible to deal with. Not an easy question to answer, SS, but it certainly has provoked a lot of quality responses (except perhaps this one!) Cheers, Capt Phil

[bizbox]

Dear Saucy Sailoress !
you forgot to write the amount, that is to invest ...
if someone have to double it, need the numbers...

anyway, good luck with the doubling...
well, that one, who answered - forgot to tell You the timing as well,
may be he means about 10 baks make to 20...
;-)

[SaucySailoress]

Originally Posted by Doodles

As I've said before, I don't go to financial forums looking for advice regarding sailing/boats and I don't get my financial advice from a sailing forum.

Perhaps not. But the one and only real life financial advisor I ever saw refused to advise me. He asked what my plans were, and when I told him I wanted to buy a yacht and sail around the world, he refused to talk to me until I got serious. He actually said "Oh well, if you know your plans that well, then you don't need advice from me!"

So - if financial advisors don't know what works well for sailors, then perhaps sailors do...

[bizbox]

AGREED!
if that all kind of "advisers" where so good, - we would not have the financial crisis last time...

right! Lady, don't talk to them ...
one, who own the yacht can advise you more...

Originally Posted by Saucy Sailoress

Perhaps not. But the one and only real life financial advisor I ever saw refused to advise me. He asked what my plans were, and when I told him I wanted to buy a yacht and sail around the world, he refused to talk to me until I got serious. He actually said "Oh well, if you know your plans that well, then you don't need advice from me!"

So - if financial advisors don't know what works well for sailors, then perhaps sailors do...

[rgscpat]

Golly gee; you'd think that most sailing or yacht clubs would have a handful of stockbrokers, insurance agents, investment bankers, accountants, tax attorneys, and other investment and financial professionals. And some of these might be making their own plans to sail over the horizon some day!

[Doodles]

Originally Posted by Saucy Sailoress

Perhaps not. But the one and only real life financial advisor I ever saw refused to advise me. He asked what my plans were, and when I told him I wanted to buy a yacht and sail around the world, he refused to talk to me until I got serious. He actually said "Oh well, if you know your plans that well, then you don't need advice from me!"

So - if financial advisors don't know what works well for sailors, then perhaps sailors do...

So, one bad experience and you are going to give up on the entire profession and turn your finances over to a bunch of sailors? That's a bit reactionary don't you think? Of course, its your money. I'm glad my experience was completely different and I was able to retire early and enjoy the cruising life.

[pteron]

Originally Posted by rgscpat

Golly gee; you'd think that most sailing or yacht clubs would have a handful of stockbrokers, insurance agents, investment bankers, accountants, tax attorneys, and other investment and financial professionals. And some of these might be making their own plans to sail over the horizon some day!

The difference is of course that these people all make money off other peoples money. Anyone can make money if they can legislate to create a monopoly and require people to use that monopoly.

Whilst I'm perhaps not as much of a gold bug as some here, I do believe that gold has way more to go. The pumping of huge amounts of money into the economy in the US and UK will result in inflation and effective devaluation of the dollar and other linked currencies.

[Doodles]

Originally Posted by pteron

The difference is of course that these people all make money off other peoples money. Anyone can make money if they can legislate to create a monopoly and require people to use that monopoly.

In that case I would advise you to get into one of those professions ... assuming you want to make a lot of easy money.

P.S. Welcome to CF and thanks for contributing. Any sailing experiences to share?

[pteron]

Originally Posted by Doodles

In that case I would advise you to get into one of those professions ... assuming you want to make a lot of easy money.

P.S. Welcome to CF and thanks for contributing. Any sailing experiences to share?

I'm far too old to be retraining and I do OK actually creating wealth!

Thanks for the welcome, I'll try to chip in on sailing in the other areas, but some of my experiences are captured on techno/luddite

I have sailed with mct if that counts!

[Hud3]

We're into our eighth page now, and all I see being indisputably proven so far is that there are as many approaches to managing cruising kitty funds as there are cruisers.

So, Saucy, after starting this spirited debate, you can't leave us all hanging. We're dying to know; which of all these approaches floats your boat?