What to invest in?

[ecotourist]

The S&P 500 and Tech have been very strong over the past 5 - 10 years. For good or ill, this movement may have largely run it's course.

I will keep some S&P 500 investments and Berkshire Hathaway of course, but I've been adding to EAFE (Europe Australasia and the Far East) and I'm going to add to Canada. I'm Canadian so take that thought with a grain of salt - but Canada has recently outperformed. Europe doesn't look very strong at the moment but it hasn't taken a turn for quite a while so it may be next.

Bonds continue to do very little. I'm sticking with a 30 - 35% allocation largely for safety.

I know nothing about precious metals, non-fungible assets or cryptocurrency. Does anyone know anything about non-fungible assets and cryptocurrency? You could be an expert in classical violins or old masters paintings and be out of the market for a few decades so it's best to leave those things to people with a passion and even better, with deep knowledge.

 

[TheOilWizard]

I like boring index funds with low expense ratios... VTI/VOO and some VXUS for international.

That said, if you want to speculate, I think self-driving cars will be the standard sooner than most people expect.

 

[ecotourist]

The S&P 500 and Tech have been very strong over the past 5 - 10 years. For good or ill, this movement may have largely run it's course.

I will keep some S&P 500 investments and Berkshire Hathaway of course, but I've been adding to EAFE (Europe Australasia and the Far East) and I'm going to add to Canada. I'm Canadian so take that thought with a grain of salt - but Canada has recently outperformed. Europe doesn't look very strong at the moment but it hasn't taken a turn for quite a while so it may be next.

Bonds continue to do very little. I'm sticking with a 30 - 35% allocation largely for safety.

I know nothing about precious metals, non-fungible assets or cryptocurrency. Does anyone know anything about non-fungible assets and cryptocurrency? You could be an expert in classical violins or old masters paintings and be out of the market for a few decades so it's best to leave those things to people with a passion and even better, with deep knowledge.

I'm a big fan of "widows' and orphans' stocks." I like dividends and steady if unspectacular growth.

 

[TheOilWizard]

I'm a big fan of "widows' and orphans' stocks." I like dividends and steady if unspectacular growth.

SCHD might be a good one for you to consider.

 

[Astro14]

Europe.

Not a chance - they have an enormous amount of regulatory burden on companies and their markets have returned far less than US markets over the past several decades.

Unless you're making a currency bet on Euro vs. Dollar.

Still - hard no.

 

[Fattylocks]

What are your predictions? This is just for predictions, I don't want people to start saying to instead ask a financial advisor ,instead of asking here. I am not seeking advice, like my other post.

Land. Farm land to empty lots on the west side of Chicago.

 

[TheOilWizard]

Not a chance - they have an enormous amount of regulatory burden on companies and their markets have returned far less than US markets over the past several decades.

Unless you're making a currency bet on Euro vs. Dollar.

Still - hard no.

I don't necessarily disagree with this.. but remember the SEC disclaimer, "past performance is not indicative of future results".. Just because Europe (and the rest of the world) have historically lagged behind, does not mean it will continue in the future. I have some exposure to these markets just in case.

 

[Astro14]

I don't necessarily disagree with this.. but remember the SEC disclaimer, "past performance is not indicative of future results".. Just because Europe (and the rest of the world) have historically lagged behind, does not mean it will continue in the future. I have some exposure to these markets just in case.

This wasn't a past performance assessment - the structural issues that curtailed growth still exist. It's fantasy to think that Europe will suddenly de-regulate, allow capital to flow, allow companies to grow, and see an improvement in market returns. They are too regulated, controlled, and hide-bound for that to happen. The past performance is simply proof of the explanation, not my basis for prediction.

 

[JeffKeryk]

Invest in yourself .

Best advice ever. After a troubled life of my own making, I finally made it back to college and stayed. 1st degree at 40. Bought a small condo. Now with the incredible Silicon Valley opportunity, things are much different.

So, get and continue your education. Minimize recurring costs going forward. Having a home (or homes) free and clear is a wonderful feeling and hedge against lean times. Max out your 401K. Get a nice index fund, like the S&P (even though it is now dominated by a few companies). Get into high tech for the long run.

Oh yeah, don't buy those fancy rides until you have discretionary income! Remember, cars are depreciating assets.
And change your own oil...

I wish you luck.

 

[factorytuned2012]

Invest in yourself .

Spot on

 

[ecotourist]

Best advice ever. After a troubled life of my own making, I finally made it back to college and stayed. 1st degree at 40.

At age 39 I started a 4 year upgrade. That set me up for the rest of my career. My best move ever.

 

[JohnnyG]

Any of the "war" stocks. Lockheed Martin, General Dynamics, etc.
VOO
Anything that pays a steady dividend, Kraft Hinze, Coke, Pepsi. Reinvest that divided until you need the cash in retirement.
Berskshire B.

 

[TheOilWizard]

This wasn't a past performance assessment - the structural issues that curtailed growth still exist. It's fantasy to think that Europe will suddenly de-regulate, allow capital to flow, allow companies to grow, and see an improvement in market returns. They are too regulated, controlled, and hide-bound for that to happen. The past performance is simply proof of the explanation, not my basis for prediction.

I agree if you're speaking from a historical and current view. However, with investing I'm thinking 10, 15, 20 years from now and beyond. I understand everyone's timeline is different depending on age and retirement goals. If someone made the argument it would be "sudden" or in the near future, I'd respectfully disagree.

 

[supton]

Do you have a brokerage yet? Or is this just a general question?

I've been stabbing my Roth into FSPGX (was doing FBGRX but it has a higher expense ratio). I like the idea of picking "the right one" for a stock but I don't have the time to get good at picking winners & avoiding losers. So I avoid that. In the future I'll diversify, into lower risk, when the need for the money gets closer. Otherwise I'd rather leave it aggressively invested.

 

[edyvw]

Campbell soup.

 

[PandaBear]

I balance my portfolio on a regular basis and since I cannot predict what someone will do if their goal is to make things unpredictable, I diversify.

Currently about 40% tech stocks I got years ago, 20% short term T bills, 20% gold ETF, 20% S&P 500. I have some small stakes in international ETF and cash for dollar cost averaging but that's about it. If something collapsed I may enter after 2 months of stability.

There are a few philosophies I follow from wiser investors: it is better to avoid the dragons than trying to slay the dragons (Warren Buffet / Charles Munger), invest in what you know well in your domain expert (Peter Lynch), and valuation matters a lot even if you invest in a good company (I forgot who was that).

 

[scoot]

This wasn't a past performance assessment - the structural issues that curtailed growth still exist. It's fantasy to think that Europe will suddenly de-regulate, allow capital to flow, allow companies to grow, and see an improvement in market returns. They are too regulated, controlled, and hide-bound for that to happen. The past performance is simply proof of the explanation, not my basis for prediction.

All true , Europe and somewhat an American problem also has a birth rate problem. Which affects growth of a lot of companies.

 

[JHZR2]

I've done best when I invest in companies I like and have first hand knowledge in. Being a Gulfstream Aircraft guy and absolutely impressed with Honeywell Avionics, I invested in General Dynamics and Honeywell many years ago. Both did extremely well.

My GE stock on the other hand (not a company I ever liked) was a complete disaster.

My favorite companies make this:

GE made these two year lifespan compressors. Something they've been making for 100 years and still can't get right:

Why does it say Tecumseh made in Brazil?

Part of the problem we’re in now…