[Aer]

Alright, so as of right now I have a good surplus of money at 21 years of age. I'm still attending college so that means I have to pay of my loans at some time, but I realize that I'll be good for now considering the loans don't have to be paid for years and until I have a paying job.

As of right now, I have a full future ahead of me, and I want to put $5000 in the markets somewhere. I was thinking in the commodities market, but I plan on doing a bit more research on business practices and the sustainability of these industries.

You guys are some of the smartest people I know when it comes to finance and making due on less, so please help me out. I will be forever in your debt.

My current 3 options: (please rate them, and if anyone knows any companies which are based on these please send me a PM)

1. Petrol industry in Russia- When I went to Russia, I noticed the oil money was being used for very constructive purposes (literally reconstruction, redevelopment, and goods and services). Putin's current protectionist policies are actually saving the Russian economy from foreign influence, which may either stymy my attempts or help them. Right now, it may not be as big of a boom as the early 1990's, but Russia seems to be on the up and up in terms of oil and industry.

2. Commodities Market in Africa- This will always be an area which is full of uncertainty and doubt, but now that China has started to reach it's tentacles out on the continent, I sense that stability is not far. While European's view of Africans is one of racism and hatred, China's is more of $$$$$$$$. This is why I am happy to say that I sense stability in Africa's future because China's investment not only to African industry, but to infrastructure and standards of living.

3. Swedish and Norwegian Currency- There's a reason why I mentioned this, but scalping seems to be the best option in this situation. The crown currency in both of these countries is extremely strong at the moment, along with their economies. This growth and strength is indeed sustainable, as their monetary and fiscal policies are quite moderate. As much as you mock Sweden over it's feminism, it has a lot of other policies right in terms of the economy. Hell, when I went to Sweden everyone I talked to mocked the Euro like it was toilet paper (which it full may be after they run out of money to bail out the 6 headed monster which is Spain/Greece/Italy/Cyprus/Portugal/Ireland). Norway also has a shit ton of oil and fishing, which is always productive.


Other ancillary but volatile options:
4. Investing in the upcoming Second Korean War and redevelopment in the Koreas
5. Reconstructing the Middle East once the instability of the "Arab Spring" ends.
6. Finnish startups (the country is putting tons of money into the small start ups in order to buoy their economy which sank once Nokia went under)


Thanks guys, I know you'll be helpful in this.

[Virtus]

that is a little capital but you can earn a bit like this
http://www.reddit.com/r/personalfinance/...ngclubcom/

or you can buy stuff locally off craigslist and local auctions https://www.proxibid.com/ and resell on ebay and amazon

or you can lend a part to me to me using http://www.lendingkarma.com/ since want to buy a 50 ft boat like one of these https://www.airbnb.com/s/90292?guests=2&...id%5B%5D=8 and rent them out when not using it to have a romantic evening overlooking the pacific sunsets this summer

[iknowexactly]

1) Dividend aristocrats

2) DRIP

[Angry Beaver]

I'm no expert on investing, but Russian petrol and gas industry might be a wrong bet at the moment considering the challenges they face in the short term.

First off, the economic has lowered the demand for energy in general, having a direct impact on the prices.
Secondly, Russia has to deal with the GazProm antitrust case in the EU; while this could drag on for some years, it will have a significant impact on the Russian energy policy. Furthermore, Russia has now committed gas to China as well, while building the extremely expensive South-Stream pipeline to Bulgaria, while global LNG "revolution" is bringing the prices down even further.

Secondly, they have almost depleted easy-access hydrocarbon resources and need to move on to harsher conditions e.g. Yamal peninsula, but they lack the technical know-how and need partner up with Western companies, which has been highly controversial during Putin's stay in office. The lack of domestic competition also makes energy sector in general somewhat inefficient.

Thirdly, it's Russia.

While these "geopolitical" aspects might not have a devastating impact on sums like 5000 dollars, caution is warranted, risk management should be in focus all the time, when considering investments into Russian hydrocarbon industry. I think a better bet would be to invest into industries, which have a "supporting" role, like metalwork, since the have to finish the projects they have already committed to.

Again, this is just my 2 cents.

Further reading on Russian energy sector: http://www.globalsecurity.org/military/w...energy.htm

[Rutting Elephant]

Why would a beginner investor narrow his options down to the most exotic and riskiest?

[Aer]

(04-05-2013 04:09 AM)Rutting Elephant Wrote:  

Why would a beginner investor narrow his options down to the most exotic and riskiest?

International relations and global economics is my area of most expertise.

[RawGod]

1. Save up another $5k
2. Go to SEA and live on your savings for a year while working on your startup
3. Have sex with many beautiful women, become rich and never deal again with decadent Western society.

[Pacesetter20]

Because he is young and can afford to lose it. Not saying he should necessarily, but it is far from a terrible idea.

(04-05-2013 04:12 AM)Aer Wrote:  

(04-05-2013 04:09 AM)Rutting Elephant Wrote:  

Why would a beginner investor narrow his options down to the most exotic and riskiest?

International relations and global economics is my area of most expertise.

[Aer]

(04-05-2013 04:23 AM)RawGod Wrote:  

1. Save up another $5k
2. Go to SEA and live on your savings for a year while working on your startup
3. Have sex with many beautiful women, become rich and never deal again with decadent Western society.

I would but I don't like Asian women. I'm thinking of doing this in Russia or Estonia, however, in a second rate city like Novgorod or Tartu and being low key. This would put me at more of an advantage considering the lack of taxes these countries have and the low living expenses. Plus I could work on my Russian.

Another option for me is to invest in the commodities sector, where there will be a future boom considering the upcoming inflation brought about by reckless money printing in the states. Gold and rare earths will be the only things which will still be useful and worth something in the future.

[tjuan]

https://www.google.com/finance?q=NYSE:LTD
Limited Brands, LTD (name and ticker is about to change), parent company of Victoria's Secret, La Senza.
Look at those dividends over one year, $4.80 for $45/share, that's roughly 10%. Yummy. (The two $3 payouts is wrong, there's only one special div every year).
Bought it years ago and just let it pay me; there's something satisfying about having trips paid for with panty money.
Good start, investing that $5k is the right thing to do.

[nmmoooreland20]

$5,000 is not a lot. Perhaps your best bet for returns is to buy a lot of items you know you will need in bulk (toothpaste, chicken, beef, pasta, etc). Say you can buy chicken at 30% buying in bulk, that’s basically the same as earning 30% in the market after tax. Only thing is if you’re in college I’d imagine your transient, so obviously would need a place to store all the stuff.

[j r]

(04-05-2013 04:12 AM)Aer Wrote:  

(04-05-2013 04:09 AM)Rutting Elephant Wrote:  

Why would a beginner investor narrow his options down to the most exotic and riskiest?

International relations and global economics is my area of most expertise.

That should make you even more wary of throwing all your money into one long shot.

Here's the problem. Any global economic arbitrage opportunities that you know of, a bunch of other people know of as well. And those other people are better capitalized, have better information and better trading capabilities.

Also, to really answer this question, you need to consider your investment horizon. What is the end goal for this money? You starting a best egg so you can retire at 40? A rainy day fund?

[Peregrine]

Quote:

You guys are some of the smartest people I know when it comes to finance and making due on less, so please help me out. I will be forever in your debt.

You don't want to take investment advice from people you don't know on an internet forum. You're doubly in trouble if you're taking investment advice from a seduction forum.

Quote:

International relations and global economics is my area of most expertise.

From one young buck to another, we don't have areas of expertise. Recall the 10,000 hour rule. Ignore everything I just said if your dad's a high ranking diplomat.

My (somewhat) unsolicited advice: keep your 5k in savings. Educate yourself on the markets. Invest in your education, career, and network. The market's will still be there and 5k isn't much leverage to be making bank with. If you still want to "invest", take the 5k to the nearest casino. You'll have similar/better odds and more fun.

[WestCoast]

Build equity in yourself.

You want to spend at least half of that learning a skill that will make you even more money in the future. Ie: how to write code, building up websites, how to make xyz product.

If you think $5K in equities is the right move you need to dream a little. You're too young to miss reinvesting in the most valuable asset in your life right now. Your brain.

[WestCoast]

Missed the 60 minute mark.
"I have a full future ahead of me"

You said it yourself, make that future brighter.

You're taking advice again from guys who are more likely than not liars and fakes. You email us we will send you a screen cap of my personal portfolio so you can choose who to take advise from.

IE: I love RVF, but this is not the place to take sock calls. As you can see I won't give you a stock but I will prove to you I know what I am doing so in the future when you're ready to invest you can hit us up for advise.

[Aer]

Thanks for the advice guys. Another thing is that I have 10k from work that I can use for personal expenses and living, and I'm still working.

This 5k would be the base of my financial portfolio, a real platform in which I could start investing in more and more things and get my feet wet in the global economy. I've been checking the markets lately, and I realized what I should do in order to make money.

Penny stocks which haven't yet rebounded from the recession seem to be the best option for me, as I can easily diversify with that little amount of money. Companies which almost went under are now doing better than they were (growth wise) in '07, and that's where my money's going to go.

I had this planned since I was much younger, and I have to invest it in the market. It's almost necessary in order to help my college financial aid (since the funds would then be invisible if invested in the market).

[Peregrine]

Quote:

Penny stocks which haven't yet rebounded from the recession seem to be the best option for me, as I can easily diversify with that little amount of money. Companies which almost went under are now doing better than they were (growth wise) in '07, and that's where my money's going to go.

Oh dear.

Quote:

I had this planned since I was much younger, and I have to invest it in the market. It's almost necessary in order to help my college financial aid (since the funds would then be invisible if invested in the market).

What's wrong with your mattress? And perhaps it works differently in Sweden, but here in Canada, brokerage accounts get reported to the government. Financial aid has access to those records.

Quote:

Thanks for the advice guys.

I can see you don't want to take it though. Listen to WestCoast. He knows what he's talking about (great blog, by the way).

[Aer]

(04-05-2013 09:08 AM)Peregrine Wrote:  

Quote:

Penny stocks which haven't yet rebounded from the recession seem to be the best option for me, as I can easily diversify with that little amount of money. Companies which almost went under are now doing better than they were (growth wise) in '07, and that's where my money's going to go.

Oh dear.

This was not from television. From my multi-millionaire friend's parents. They know their shit, and it isn't just any company, you probably know damn well which one.

And I'm U.S. based, just in Sweden for exchange.

[defguy]

Never take advice from someone who has nothing to lose if you fail. Having said that here is my input.

I did exactly the same thing and lost it all despite having read over 200 books on investing.. Whatever you think you know, im sure Ive got you beat. (why is this always the magic number? everyone starts with $5k) I made up to $20k on my $5k in my first trade and proceeded to lose it all over several months by overtrading which was between 2-5 trades a month (I traded options which was the only realistic thing you can do with that small amount).

Here is my advice, put it in one of those investment products your friend who works at Northwest mutual or some bogus fund is selling. yes its crap but youll get like 3-10% a year and can have it managed by someone else - it isnt going anywhere. Then create an account at TD ameritrade, download think or swim software and watch their videos and videos on youtube. All the technical/fundamental analysis you can get your hands on. Read some books too like Market Wizards, Trading for a Living, etc.

Now your goal is to make $$ so with the paper trading account trade for 1 year before putting any real $$ in. Over 5-10 years Youll notice in actuality there are only about 3-5 MAJOR trades in the year, the one stop shop where you turn your $5k into 20k+ without being stupid and hedging the downside. If youre patient enough and ride 2 of those major trades youll make more $$ in 1 year than most people you know.

But youre not there yet because your young and dont have the patience to wait, you want to make money every week. Hell you might not even know what to look for. So paper trade. If in 6 months you have more than you started with put $1,000 into your real account and you can trade that, but continue to paper trade as well. If you lost even .01 during that 6 months you start again another 6 months from scratch. If you're truly capable of making $$ online due to instinct, adaptability and learning technicals/fundamentals you will grow your account fairly quick in no time and not only will all your $ be in your real account, but your real account will be multiplying.

I had the worst thing that can happen to someone. The midas touch, almost every investment I made was up $1k within minutes of placing the trade. It got to the point where I couldnt accept anything less than $1k and that was my undoing. Eventually the noise got to me and I am not re-learning to trade while ignoring the noise. You havent started trading or made your first $10k yet so youll probably be extremely cautious and smart on your first few trades and have great success but then eventually - gradually, the noise will kick in, and all the skills you used to pick trades will be jumbled by forces like greed, fear, invincibility, other people telling you what to invest in, misinformation, etc.

I personally think youll ignore my advice, but if you follow my advice I think youll go 6 months successfully, put $1k into the real market, come out with around $200 after 6 months and back to paper trading. Youll probably lose all of it by the time you graduate.

A lot of these guys gave great advice and I tend to agree with them. Having started a business as well, I recommend that over investing. Businesses when successful grow so fast you cant keep up. Few investments can possibly give you that kind of return and the skills you learn with hands on experience cannot be learned elsewhere. You are making the best investment you can make, an investment in yourself. Even if the business fails, you wont regret it because the skills and "proving to yourself" are worth it. Read the books "The Education of Millionaires" as well as "So good they cant ignore you." Those 2 books should really put in perspective for you how best to invest your time money the way successful people do.

[rudebwoy]

Buy physical gold and sit on it.

Currencies are too volatile.

[Zeus]

Listen to Westcoast

[Peregrine]

Quote:

Never take advice from someone who has nothing to lose if you fail.

Quoted for truth.

Quote:

From my multi-millionaire friend's parents. They know their shit, and it isn't just any company, you probably know damn well which one.

I question why you mentioned your friend's parents' net worth. It's not as if net worth and investment ability are in any way correlated. And if they know their shit, why are you asking for the forum's advice? But I digress. Best of luck.

[MikeCF]

(04-05-2013 04:12 AM)Aer Wrote:  

(04-05-2013 04:09 AM)Rutting Elephant Wrote:  

Why would a beginner investor narrow his options down to the most exotic and riskiest?

International relations and global economics is my area of most expertise.

What's your edge?

You're 21 and your expertise is going to beat the guy on the other side of the trade?

I'm not gonna hate on guys for being young, there are whiz kids.

But unless you have an actual edge (ie INSIDE information, family connects, something), then your expertise doesn't mean jack.

[j r]

I can understand wanting to get your feet in the investing pool, but West Coast is right. The gains you get from investing in your human capital will far outstrip anything you make from investing, especially when you factor in risk.

If you're dead set on investing, why not just dump it in a no load fund tracked to some benchmark. Fees are going to eat away all your gains if you're trying to actively manage $5k. The other option is to pick one or two higher yield instruments and hope they take off. If you're going to do that, you might as well take it to Vegas.

[NY Digital]

Invest in Bitcoin. Or Litecoin.