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Thread: Advice for young, new investor?

  1. #26
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    Default Re: Advice for young, new investor?

    Quote Originally Posted by person View Post
    Dude, you're just ranting.
    Me, and the rest of the country.

    Quote Originally Posted by person View Post
    If I understand correctly, the topic of this thread is "advice for a young, new investor" and you seem to be saying that going anywhere near anything except a bank account or starting your own business (which is about the riskiest thing you can do) is a bad idea for some reason.
    I wouldn't advise putting all your money in a bank account. Small businesses can be risky, if you don't do the appropriate research and planning, but that's true about any investment. Generally, franchises have about a 75% success rate, because you are following a true-and-tested business model.

    Also, the internet allows for starting a businesses with a small investment. You can import low-cost goods from China (e.g., toys, electronics, lingerie, clothes, etc.) and sell them on e-bay or on your own website. You don't even have to pay rent for a brick-and-mortar store.

    Quote Originally Posted by person View Post
    I'm a trader, and so am biased, but a lot of the hate for "Wall Street" that I read is very misinformed.
    I'm not going to say that all traders are unethical, but would you at least admit that there is a conflict of interest inherent in the industry, because traders are encouraged, pressured and/or enticed to sell certain products that are not always in alignment with the best interest of the client?

    There may be a lack of understanding of the particulars and technical aspects of what is reported regarding "Wall Street", because some of the investment vehicles (e.g., derivatives, Mortage-Backed Securities, Collateralized Debt Obligations, etc.) were so complex that even the CEOs of Wall Street firms don't understand them. But, the essence of it all is very simple - arrogance and greed.

    Many people anticipated the bursting of the real estate bubble and warned about it (all bubbles must eventually burst, its just timing that makes some people big winners and others big losers), but the Wall Street firms were making easy millions selling derivatives, MBS, CDO, etc., and they did not apply the brakes to mitigate the looming catastrophe - full speed ahead, ignoring the imminent trainwreck looming ahead.

    Basically, the Wall Street firms were counting on the US taxpayer to absorb all the losses when the real estate bubble finally burst. This was to occur in one of two ways: (1) the government would subsidize homebuyers, so that they wouldn't default on their mortgage and lose their homes (this did not happen, except to a very slight degree) , or (2) the government would bailout financial institutions that were "too big to fail".

    Hedge Fund Manager John Paulson knew about that the bubble was about to burst, and he got Goldman Sachs to create investment vehicles designed he make him a billionaire (and his pals uber-millionaires) when the pop occured. Who did Goldman Sachs sells the other side of these investments too (the losing end of the stick with meteoric potential losses)? Its other customers. Either way, Goldman Sachs makes its commmissions.
    Last edited by jack0177057; 12-01-2010 at 09:57 AM.
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    Default Re: Advice for young, new investor?

    Quote Originally Posted by Melonie View Post
    ^^^ indeed the USA is more or less unique in regard to it's desire to tax the wholly foreign generated income / profits of it's individual citizens ... while at the same time tolerating existing tax shelter structures that essentially exempt the wholly foreign income of certain US corporations....
    I certainly would have NO IDEA where that set of tax laws originated. (yeah, right)
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Advice for young, new investor?

    the OP needs to pay off the student loan, buy a few oz of silver, and put the rest aside towards her 12-18 month emergency fund. yes, everyone says six months expenses, but if you work in cash, 12-18 months' expenses is much more sensible to have socked away ASAP.

    buying a little bit of a precious metal is a hedge, not an 'investment' per se. that is, its value will never be negative. anyway, i think everyone should have a little silver or gold lying around.

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    Default Re: Advice for young, new investor?

    Quote Originally Posted by miabella View Post
    ...
    buying a little bit of a precious metal is a hedge, not an 'investment' per se. that is, its value will never be negative. anyway, i think everyone should have a little silver or gold lying around.
    One can have a negative return if one waits to sell until the price dips too far. But that will be quite a few years before it goes for what it did in the early 2000's.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Advice for young, new investor?

    no, precious metals have some intrinsic value above zero, whereas stocks can go to zero or even below if you use leverage. and we all know where fiat currency (cash) can go in value. i find it useful to maintain an asset with a historically considered intrinsic value.

    that is, the point to me is not to buy a few oz of gold or silver to sell off at all, but simply to have.

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    Senior Member Lillionaire's Avatar
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    Default Re: Advice for young, new investor?

    UPDATE: i paid off the student loan! now on to the other stuff... just saving more again, i guess.

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    Default Re: Advice for young, new investor?

    ^^^ congrats !!!

    Exercising financial 'discipline' isn't easy !

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    Default Re: Advice for young, new investor?

    Quote Originally Posted by miabella View Post
    no, precious metals have some intrinsic value above zero, whereas stocks can go to zero or even below if you use leverage....
    This is true, but I said nothing to the contrary, just about return on investment.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Advice for young, new investor?

    Quote Originally Posted by jack0177057 View Post
    I don't necessarily agree with putting your money in a savings bank, but I'll say this - I've represented a lot of rich people and NONE of them got rich by investing in the stock market. They got rich by investing in themselves (with many ups and downs along the way).
    What do you mean by investing in themselves?
    I THINK - THEREFORE I AM

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    Default Re: Advice for young, new investor?

    ^^^ I assume that reference was in regard to a person 'investing' in their own business in order to increase profitability. In the context of exotic dancing, this might mean investing in a boob job !!! After all, investing $5000 in a CD may produce an extra $50 a year in interest earnings. Investing $5000 in a 'solid' dividend stock might produce an extra $500 a year between cap gains and dividends. But investing $5000 in major league breast implants might produce an extra $5000 in annual dancing income !

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