Discussions about different investment strategies, and their different outcomes.

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0
votes
2answers
74 views

How do I tie up an inheritance?

I stand to inherit a large estate over the next ten years or so. The inheritance will come from my direct parents and step parents, who have no other children. However, I know that other members of ...
4
votes
2answers
90 views

How is negative gearing a good thing?

In Australia investors buy investment properties that are negatively geared to save tax. A lot of articles on property investment say that one of the cons of having a positively geared property is you ...
0
votes
1answer
34 views

Should peer to peer lending be part of a diversified taxable portfolio

I'm wondering how p2p lending factors into taxable accounts. They do offer diversification outside of normal bond etfs. Are they appropriate in rounding out a diversified portfolio, or should a ...
1
vote
1answer
30 views

Bond strategies for a steepening yield curve?

If it is believed that the yield curve is going to steepen very soon, it may be fall in short-term rates, a rise in long-term rates, or some combination of these. What strategy should you pursue in ...
2
votes
2answers
73 views

Hedging against an acquisition of a stock

Let's say I have done research and have a view that a public company's stock will go down due to worsening fundamentals. So normally then, one can express that view by shorting the stock. However, ...
3
votes
1answer
58 views

What's the best way to deal with the market swings? [closed]

So I've been trading for a while. Having said that, the current bear markets are driving me to get some "deals". I think I bought some investments for a decent price. Having said that, I can't go ...
5
votes
2answers
1k views

30, debt free and looking to invest $500-$1,000 a month [closed]

I'm 30, debt-free, make max contributions to my Roth IRA and 401(k) and have six months of living expenses in a high-yield online savings account. I live frugally and am gainfully employed. At this ...
4
votes
3answers
584 views

Investment strategy for retired couple

My parents are retired (71 and 75), their house is paid off, and they have a moderate amount of savings between some IRAs and bank accounts. All of their savings is in cash or money markets, and it ...
4
votes
1answer
57 views

Should I do a Rollover 401k instead of a Rollover IRA because of the loan option?

Until now, I was pretty much convinced that rather than rolling over the 401k from my old company to the new company, it is a much better option to roll everything over to a Rollover IRA, and my ...
-2
votes
1answer
100 views

Fundamentals Look Great, What Now? [closed]

So after days of fundamental analysis on hunderds of stocks, I've narrowed it down to three that seem really good. Their margins are good, ratios are good, EPS and P/E are good, etc. What is the next ...
-5
votes
3answers
76 views

Does buying and selling a stock OR holding onto it make a company look better?

Many people who want to support a company will buy its stock on the stock market. If that is their only goal (to make a favored company look better), would that be better achieved by treating it as ...
4
votes
3answers
139 views

Should I replace bonds in a passive investment strategy

In a passive investment portfolio one usually has some sort of mix between stocks and bonds which are supposed to offset losses from each other. I've read that because of low interest rates persisting ...
-2
votes
2answers
83 views

Making money through CFD

If I don't own the stock I am investing in, like in a CFD, then how do I make money? Where does the money I am investing go to, and where does the money I make come from? And what happens to the ...
3
votes
3answers
143 views

Should I change 401k investment options to prepare for rising interest rates?

As the "Fed" (in the USA) is getting ready to raise the federal funds rate, is it a good idea (or is it even possible) to try to adjust my 401k portfolio for better returns? I'm speaking in general ...
28
votes
15answers
8k views

Why invest for the long-term rather than buy and sell for quick, big gains?

Somewhat along the lines of this question. I've been putting mostly unmatched money into my 401(k) for a few years. I know that investing is generally seen as a long-term decision, but with volatile ...
1
vote
0answers
38 views

Trading intraday fluctuation vs. volatility-based option

Recently a question was asked about actively trading stocks based on small fluctuations in price. It seems like if you wanted to do the strategy described here, you might as well buy an option like a ...
3
votes
5answers
276 views

What evidence exists for claiming that you cannot beat the market?

There seems to be a common sentiment that no investor can consistently beat the market on returns. What evidence exists for or against this? I have never seen any study or credible book that claims ...
1
vote
4answers
162 views

Strategy for investing large amount of cash

Suppose you suddenly have a large amount of cash (relative to your net worth) that you would like to invest. E.g., you just sold your house or you received an inheritance. If you invest all this ...
1
vote
1answer
32 views

Should a SIP as spread out as possible, or minimize time spent by money in savings accounts?

In the context of India, where money in savings accounts gets 4% interest (tax free for me) per annum, and SIP frequency doesnt affect my transaction costs in any way I'm trying to understand, which ...
2
votes
6answers
128 views

Name of investment where capital guaranteed?

I remember briefly hearing about an investment type which guarantees your initial investment. So you are able to make a reasonable (but not mind-blowing) profit but the initial capital that you pay is ...
2
votes
1answer
118 views

What percentage of my money should I invest outside my country?

I live in India, and invest in both Indian and international equity mutual funds[1]. What percentage of my portfolio should I invest outside India? I thought that since India's GDP is some 3% of the ...
0
votes
3answers
65 views

Emulating a 'long straddle' without buying or selling Options?

If I go long and short a stock simultaneously, with a 1:50 leverage, and place a stop loss on both for when a 10% loss is reached, isn't this the exact same principle as the long straddle strategy ...
1
vote
1answer
62 views

Dollar cost averaging an expensive asset

Suppose I want to invest $1000 every month in asset X, in order to implement a dollar cost averaging strategy. The idea here is that when X is cheap, I will end up buying more shares with my $1000, ...
34
votes
9answers
8k views

How to rescue my money from negative interest?

My bank has announced negative interest rates starting Q1 2016. I have CHF 250'000 in that savings account (Swiss Francs). Now, pretty much all other banks will probably follow suit soon, if they ...
4
votes
4answers
279 views

What is good growth?

I want to start rolling rental income into the stock market more. I already max my company 401k so I don't mind something that isn't tax deferred. Up to this point I have been saving $5k and then ...
1
vote
2answers
321 views

Why does a ETN that is supposed to track Crude Oil like UWTI show constant decline every year? And am I an idiot for investing in it?

UWTI, VelocityShares 3x Long Crude Oil ETN, which is supposed to track crude oil, shows a year over year negative return whether oil skyrockets or not. I thought it would be good investment with oil ...
3
votes
2answers
419 views

Vanguard S&P 500 Mutual Fund has an average of 10% annual gain for any given period of 20 consecutive years?

Is it true that Vanguard S&P 500 Mutual Fund has an average of 10% annual gain for any given period of 20 consecutive years since the great depression? If my math is correct, than if I were to ...
4
votes
3answers
864 views

Why do people invest in mutual fund rather than directly buying shares?

I have seen a lot of people investing in a mutual fund rather than buying the shares directly. Though buying shares gives higher return, people tend to invest in mutual funds more.
0
votes
1answer
75 views

Allocating money for investment

Context So I'm allocating around $500 per month for investments and I have enough savings for about 6 months should anything happen. I have no debts and I'm living a comfortable life in my early 20s ...
2
votes
1answer
65 views

Is it wise to invest in bond fund when interest rates are low?

I have 1/3 on my savings in a bond fund. I live in Canada where interest rates are very low. I know that the interest rates can't stay low forever, and I know from basic finance class that bond ...
5
votes
3answers
170 views

What's the smartest way to invest money gifted to a child?

I have two sets of very doting grandparents with the first grandchild in the family, and as such, they are being fairly generous already (Not even a year old yet) with giving money and other items. ...
4
votes
3answers
649 views

What metrics must a trading strategy meet to be considered profitable?

Say you have a trading strategy that makes wins (i.e. profitable trading decisions) x% of the time. Is there a value for x at which the strategy can be said to be objectively profitable? Must that ...
2
votes
2answers
256 views

Advice for a college student interested in investment opportunities.

I'm 20 years old and currently attending university for a double major in engineering and science fields. My college expenses are being covered. In addition to that i have worked for the past few ...
4
votes
2answers
208 views

How should I invest my money as a young graduate in Europe?

This is related to this question, but that question's answers are 95% tailored for residents of the US, basically recommending to full out the 401k retirement plan and this and that about stock market ...
13
votes
2answers
945 views

What's the best way to invest for making regular donations?

Up until now, I've been making my donations to charity in a very naive way, by just skimming the top 'x'% off of my raw income and using that bucket for donations. Recently, I have been making more ...
2
votes
2answers
212 views

What is the optimum way to draw money from your retirement nest egg

Let us say I have put away a nest egg like this (all numbers in CAD): Cash/GIC : 100,000$ Stocks/ETF: 100,000$ Bonds:100,000$ REIT: 50,000 Own rental property : 200,000 Let us say, I wish to retire ...
9
votes
5answers
2k views

Pros/cons of borrowing money using a mortgage loan and investing it in a low-fee index fund?

I'm wondering if this investment strategy would work: I get a mortgage loan for $300K at a 3% rate (realistic for current 5-year fixed mortgage rates here in Canada). I invest the proceeds in a ...
1
vote
3answers
339 views

Does longterm investment in index funds still make sense in a reality of massive algotrading?

More and more teams around the world are starting to compete against each other with sophisticated trading algorithms (both high and low frequency trading). For a private investor, if this trend ...
1
vote
1answer
330 views

Investing money 101

I feel really bad for posting this because I'm completly unable to make a proper search about my question. There is a very high chance that this is more than duplicate, and I apologize. I would like ...
3
votes
2answers
445 views

Why isn't index fund investing (Bogleheads school) more commonplace? [duplicate]

I started investing recently, but I've been searching for information for over a year now. My main sources (listed below) favour the strategy of Jack Bogle. i.e. Choosing an index fund with good ...
0
votes
1answer
102 views

How can retail stock and options traders find trades with a clear defined positive edge

A retail trader of equities and options may believe that his technical signals and fundamental analysis is superior and smarter than the other retail traders. Maybe for some it is true. For a lot of ...
0
votes
0answers
115 views

Is it a safe strategy to protect a high dividend stock with a collar?

I want to find a few high dividend paying stocks (~10% yield) for my tax sheltered portfolios. I also want the stock to be reasonably safe. I am looking at this list. Problem is, I don't know how to ...
1
vote
3answers
162 views

How do I manage my portfolio as stock evaluation criteria evolve?

Background: I'm a very small-time (eg. $100s), inexperienced trader. Currently, I'm buying and holding stocks that bear dividends. When I evaluate stocks, I look at certain criteria; these have a ...
0
votes
1answer
279 views

What is the Average Yield on High-Grade Corporate Bonds as of Now?

I am looking to update the formula used by Benjamin Graham to calculate a stock's intrinsic value. His most recent formula can be found at http://en.wikipedia.org/wiki/Benjamin_Graham_formula. The ...
0
votes
2answers
74 views

Is there any emprical research done on 'adding to a loser'

Adding to a loser or doubling down i.e add to your position when it has halved because of adverse movement is a very debated topic. Is there any study done on when it works, and when it does not, ...
-1
votes
1answer
94 views

Passive vs. active investing past performance comparison/data?

I am looking for past statistical data how on average active investment (managed by fund manager) compares to passive investment (index) in 10 or 20 past years. I intend to compare the average gains ...
1
vote
2answers
112 views

Selecting between investment vehicles for income

I'm a pre-university/college Australian student who has recently (last 2 months) come across the idea of investing. I have amassed around $1000 of entirely spendable money as I have no debts or living ...
0
votes
2answers
151 views

Pay off no interest loan with a personal loan?

As part of an employment switch, my new employer fronted $325k to buy out my old employer's non-compete clause. The $325k was to be repayed without interest, through certain paycheck deferrals. Once ...
0
votes
3answers
459 views

I just received $40K. How should I invest?

I'm 25 years old and just finished my Undergrad in Kinesiology. Not looking to go back to school anytime in the near future. I start a new job in a week where I could be making minimum 30K/yr. I have ...
0
votes
1answer
237 views

Traditional firms vs. Computer managed firms for investing

What are the short term (3-5 years) and long term (5-15years) advantages/disadvantages traditional vs. Computer managed investment firm.