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  #1  
Old August 16th, 2011, 08:10 PM
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SleightOfHand SleightOfHand is offline
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Default Diversifying my bankroll

Hey guys,

So, as I have been staying here, my bankroll has been slowly growing from my poker play. As I am feeling more comfortable with the swings, I am considering to set aside about 10k to invest in something short term for now (around 1 year or less). Any suggestions on what I can do?
  #2  
Old August 16th, 2011, 08:15 PM
Machinist Machinist is offline
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Default Yes

In a year the value of that 10g will have dwindled...How much?? who knows....
Physical gold or silver.......We have beat this horse to death on this site lately....But, its the way to go if you really arent lookin for a gamble with it....

Machinist
  #3  
Old August 16th, 2011, 10:57 PM
Xenophon Xenophon is offline
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What kind of risk are you willing to take? If you want zero risk open a high yield savings account like:

http://www.ingdirect.com/savings/?ut..._source=Google

or:

https://www.salliemae.com/savings-an...07=Search&008=

These are highly liquid (debit card or checkable deposits).

If you are willing to take a risk at losing some of the capital you could open a low cost investment account like I have:

http://www.sogotrade.com/s1/Default.aspx

and buy this Vanguard dividend fund yielding 3.25%

https://personal.vanguard.com/us/fun...FundIntExt=INT

That's $325.00 in dividends throughout the year but there is also a chance of capital loss. If the market is higher you will have a capital gain in addition to your dividend payments.
  #4  
Old August 17th, 2011, 03:14 AM
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zengrifter zengrifter is offline
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Quote:
Originally Posted by Machinist View Post
In a year the value of that 10g will have dwindled...How much?? who knows....
Physical gold or silver.......We have beat this horse to death on this site lately....But, its the way to go if you really arent lookin for a gamble with it.
A nice degree of additional liquidity can be achieved with GoldMoney.com - but personally, I recommend 250 oz of silver held close. zg
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Old August 17th, 2011, 03:19 PM
moo321 moo321 is offline
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S&P 500 index fund will average the best return.

If you want to be safer, buy some utility stocks. Good dividends and returns, less risk than most stocks. I have a utility in my portfolio right now. I'd recommend utility stocks over bonds right now because of the dividend yields.
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Old August 17th, 2011, 05:23 PM
mjbballar23 mjbballar23 is offline
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Quote:
Originally Posted by moo321 View Post
s&p 500 index fund will average the best return.

If you want to be safer, buy some utility stocks. Good dividends and returns, less risk than most stocks. I have a utility in my portfolio right now. I'd recommend utility stocks over bonds right now because of the dividend yields.
+1
  #7  
Old August 17th, 2011, 05:50 PM
Xenophon Xenophon is offline
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If you don't want to research which utility stock(s) to buy this is a good low cost way to buy a basket of utility stocks. It's currently yielding 4.05%.

http://www.sectorspdr.com/eqsnaps/?d...hot&symbol=XLU
  #8  
Old August 17th, 2011, 10:15 PM
#cruncher #cruncher is offline
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Default But if you're willing to take on more risk...

I think this is the time to buy into tech. Specifically, the RF component makers of 3G and 4G wireless products. I'm no electrical engineer but from my research, these smartphones do not operate on the traditional silicon chips. They use Gallium Arsenide (GAAS), which is apparently higher quality and involves a more specialized manufacturing process, giving the current incumbents a competitive advantage.
I've been playing these semiconductors over the past couple years with some success, selling short-term covered calls on core positions for the first half of the year. Then using the premiums to go long on 6 month to 1 year calls into their seasonally strong 2H. These two stocks pretty much dominate the space: SWKS and AVGO. They both have healthy balance sheets and are trading at historically low multiples after the debt ceiling debacle (around 11 times next year's earnings on 25% expected growth). Plus, they very rarely miss.
I just added some more AVGO calls leading into their Q3 conference call on Aug 23. Good luck to me!



!
  #9  
Old August 18th, 2011, 06:21 PM
KingHenry KingHenry is offline
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how about choice d. and go with all of the above and consider diversifying that 10gs even further? It's proven that no one asset class ever consistantly outperforms the rest, and there's no reason to put all of your money into one asset, unless it's a small percentage of your total wealth and you're comfortable using this money to purely speculate. You may not hit a home run, but by diversifying it'll be like not putting all your money on one hand. Let me know if you're interested in any asset allocation percentages depending on risk tolerance...
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Old August 25th, 2011, 12:12 PM
moo321 moo321 is offline
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Quote:
Originally Posted by KingHenry View Post
It's proven that no one asset class ever consistantly outperforms the rest
What?
 

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