Should I invest in the stock market?

[eugenekop]

I have 40 grand to invest for a very long term investment (20 years or more). Do you think the stock market is a good idea? I am not necessarily talking about American stock markets, I thought to invest in the Israeli stock market.

[legion]

Experts usually recommend that you have a 6 months emergency fund built up. You can inveset the rest, but I'd make sure I have emergency funds, for personal liquidity issues. For instance, if you lose your job and have to make house and car payments.

[Mike4Freedom]

You can sell stocks instantly and have the moeny for them in a few days. They are very liquid.


That is a nice chunk of change to invest. If you are going longterm you definately dont want to hold a lot of dollars.

Get a scottrade account.
I would take 20 grand of that and get foreign dividend paying stocks in commodity sectors.

ERF(Enerplus Resources) 7.65% dividend canadian oil trust.
(Line)Linn Energy 7.2% dividend, Linn energy is in the US though, that is why I think ERF is a better buy.

So now you have your oil and natural gas investments.

Now onto utilities:
IPU(Spider International Utilities Sector ETF) This pays a 3% dividend or
DBU(Wisdom Tree Internation Utilities ETF) This pays a 3.89% dividend

Now onto some emerging markets:
EMIF(Ishares emerging markets infrastructure ETF) This pays a 3.84% dividend
DEM(Wisdom Tree emerging markets ETF) This pays a 4.54% dividend

Now onto agriculture:
RJA(Rogers international commodity index)
GRU( another international agriculture etf)

Onto forestry:
WOOD( a great forestry ETF) or
RYN(Rayonier Inc) They pay a 4.17% yield. This is a REIT that owns sells and leases huge amounts of land for forestry operation.
PCL(Plum Creek Timber) This pays a 4.63% dividend. They also are involded with natural gas a bit.

You can look up other companies, these are just some good ones. They all pay dividends except the agriculural ETFs.

at least 50% of your portfolio should be in these sectors. Since you are going long term I would recommend 60% in these sectors.

With the remaining 40% I would invest half in the physical bullion and half in mining stocks.

That leaves you 8000 for bullion. Since silver is undervalued I would use more of this amount to buy silver then gold. Buy 2 ounces of gold and the rest silver. Vary your silver, get some 10oz bars, some 1 ounce ASEs, some junk silver. For the gold get a coin and a bar.

The other 8K you have left should be invested in mining stocks. These are more risky but I have made a lot off of them lately. I must warn you though, they go up in huge spurts and go down in huge spurts. So you need to get in the right ones.

You want to diversify your mining picks.

NG(Novagold) They mine gold,silver,copper, and zinc
HL(Hecla) Silver miner
AUY(Yamana Gold) Gold miner
AXU(Alexco Resources) They found an ore body and is building the mine right now. They are a little riskier but a lot of potential
DNN(Denison Mines) A uranium mine. They have been doing very well lately.
TGLDX(Tocqueville Gold) This is a mutual fund that invests in all sorts of gold miners. I really dont like mutual funds though.

Only do what I listed above if you have no credit card debt. Dont worry about lower interest fixed rate debt. Just get rid of credit card debt.

Make sure you have 3 months of food storage. Also make sure you have a bit of cash in dollars. Not too much though, a couple grand will do. You can always sell PMs are stocks if you lose your job and you really need the money. At that point the stocks are gaining value, dollars in a savings account will not be.

[brandon]

absolutely. Find yourself a good mutual fund. If this is for retirement make sure you do it through a roth IRA.

[legion]

You can sell stocks instantly and have the moeny for them in a few days. They are very liquid.


That is a nice chunk of change to invest. If you are going longterm you definately dont want to hold a lot of dollars.

...


That's some really bad advice you have there.

But I'll only respond to the portion directed at my comment. You have the emergency money in cash because stock values tend to decline at exactly the moment you would need the cash. IE the stock market goes down and many companies have layoffs.

Then you may find yourself in your own "liquidity crunch" where you have to stop paying your bills.

[legion]

absolutely. Find yourself a good mutual fund. If this is for retirement make sure you do it through a roth IRA.

And of course nobody that replies to a thread takes the time to read what the person is asking...


THIS POSTER LIVES IN ISRAEL
THEY DO NOT HAVE ROTH IRAS.

[Original_Intent]

Three rules to live by:

1. Do not get in a land war in China.
2. Never enter a game of wits with a Sicilian if life is on the line.
3. Never ever EVER ask for financial advice on the internet (with any intention of following said advice anyway.)

[agitator]

But land in the settlements.

[cubical]

Three rules to live by:

1. Do not get in a land war in China.
2. Never enter a game of wits with a Sicilian if life is on the line.
3. Never ever EVER ask for financial advice on the internet (with any intention of following said advice anyway.)

Regarding #3, I never got this. I think its perfectly fine to ask for ideas on a message board. I would rather get collective advice on a ron paul forum, than from a financial broker at fidelity.

[Mike4Freedom]

you are 100% above the curve if you take advice here instead of cnbc or a financial advisor.

What I gave him was great advice and will save his wealth.

Also to legion, on monday stocks had a big selloff because of the korea situation, while stocks went down the dollar did go up 1.3% but gold shot up 30 dollars in a short period.

As more and more things happen people are going to go towards precious metals instead of dollars.

Do you have 40K in shekels or us dollars? If its us dollars follow my advice.

If its shekels you dont have as much money to work with and would go heavier into mining.

Also mutual funds have too many fees. TGLDX is a gold mutual fund, yeah on days when gold shoots up it goes up 2% but my gold mining stocks shoot up 12% on good days.

On bad days TGLDX is doen 2% on bad days my mining stocks are down around 6%.

Mutual funds managers try to keep things good in the short term to compete for customers.

Mutual funds is a way to invest if someone is too lazy to do due diligance and research the information themselves. I am not going to pay someone 1.5% of my total investment every year when i can do the research and invest in companies that have more upside and I dont have the 1.5% fee.

Example:
My buddy has a 401K, he does mutual funds. His funds are up and doing nicely. My portfolio is doing more then twice as good and he is invested in mining and energy too.

Another thing, if you always take the safe route you will work until the day you die, especially in todays economic environment. Saving up and investing in a 401K in todays climate will not allow you to retire at 55 im sorry.

With world government spending and going into debt and currencies losing value you need to be one step ahead of the curve.

About the Roth IRA, he cant get one anyway but if he could most likely in a few years they make them invest heavily in treasury bonds by law, you watch. Same with 401ks. At least witha brokerage acocunt if they are getting ready to pass a law I can mvoe it all out without penalty.

[eugenekop]

Thank you for the advice. I have 120k in Shekels, so its about 35k in Dollars. I am 27 now, so I actually don't even know what I am saving for, I just know that I don't need the money now. I work in high-tech so I make a lot of money (80k a year), but I also have a very high chance of being fired (the industry is volatile).

I don't want to spend time to research stocks. What I thought about was to buy ETN. We don't have ETF in Israel, but we do have ETN. The question is whether investing in the biggest 25 companies in Israel (which is what the ETN will give me by following the Tel-Aviv 25 index) is a wise thing to do. If the world is going now even deeper into recession, then I will lose money. Maybe I should wait out?

[xd9fan]

here is a great mutual funds thats hard to beat

prpfx

http://www.permanentportfoliofunds.com/pdfs/perm/Permanent_093010.pdf

http://www.crawlingroad.com/forum/

good luck!!!

[Arklatex]

I'm not sure what a shekel is but If i could trade them in for land I would do that. I'd buy like a nice mountain bike, four-wheeler riffle shotgun, couple bows, dog and food. Fishing gear, a couple grand to blow, and some nice gold and silver bullion. If you have money after that I'd consider buying shares in mining companies.

gold advice there bud

[eugenekop]

What about ETN though? Does anyone have experience with it? Maybe instead of buying ETN I will better just buy the shares that constitute the index itself?

[ILUVRP]

I have some phy gold/silver , also some pm stocks. The thing is , look at the link below , this is where the real long term big money will be made.

http://www.nuclearcounterfeit.com/?p=5360

[revolutionary8]

Hs 20/20