$200,000 to invest - what would you do?

[Jay-684]

With the current market conditions in both the stock market and to an extent property (expecially resi), if you had $100,000 in capital and $100,000 in debt to invest (thats $200,000 for everyone out there ), where would you personally be putting it, in terms of investment vehicles, not specific stocks (specific sectors is ok).

Eg for myself I am probably thinking of putting $65,000 into resource/energy stocks, with a further $65,000 into ASX50 stocks (besides obviously those already chosen in the resource/energy section, and the remaining $70,000 into 2-3 LPT's with high yields and low levels of risk.

It will be interesting given the more trading nature of members on this forum (a majority anyway) to see where people would stick their money.

Jay

 

[crackaton]

If you had access to a large safe place I would buy 200K worth of silver bullion!! or maybe 100K of SBM and the rest of MMN

 

[Sean K]

40% International Managed Funds
25% Gold
15% Diversified Resources
15% Oil
5% Uranium

Or, I'd buy a dive boat in the Caribbean marketed towards female backpackers from Scandinavia. Although, I need $400K for that plan to come to fruition.

 

[crackaton]

40% International Managed Funds
25% Gold
15% Diversified Resources
15% Oil
5% Uranium

Or, I'd buy a dive boat in the Caribbean marketed towards female backpackers from Scandinavia. Although, I need $400K for that plan to come to fruition.

Well with three of us here we have 600K so we could get the boat going as a partnership and still have some money left over for the gold lol

 

[money tree]

1. open oanda account
2. deposit 200k as margin
3. collect 5.75% (deposit interest) on the 200k
4. open 200k AUDJPY position
5. collect another 5.6% (carry interest) on the 200k
6. total collect 11.35%
7. laugh all the way to the bank

 

[canny]

1. open oanda account
2. deposit 200k as margin
3. collect 5.75% (deposit interest) on the 200k
4. open 200k AUDJPY position
5. collect another 5.6% (carry interest) on the 200k
6. total collect 11.35%
7. laugh all the way to the bank

Money tree - the original scenario had 100K of the 200 as debt money - so I presume we'd have to cover interest on it.
I'll be in the boat partnership!!!!!!!
I'd put $100K in long term going to perform well small stocks on todays market - with NDO and YGL being the type. Leave them alone to come to fruition and put the other $100k in Blue chip dividend paying stock. WOW and RIO would probably get $50K each. Woolworths are now the 'Walmart of the South Pacific' with the lions share of the market and growing.
that's given a 2 way split to the money.
50% Blue chip (half retail - half resource)
and 50% small but going places current stock - resource sector. Oil or uranium.

 

[noirua]

Use the money to short a whole range of stocks in all but the Gold and associated sectors.

 

[Realist]

if you had $100,000 in capital and $100,000 in debt to invest

I'd either prepay the interest on the loan as tax rates change next financial year.

Or not borrow the money in the first place. And only invest $100K. Mainly because the ASX is possibly/probably overvalued at the moment.

I'd Invest 40% in a US index fund.
Keep 30% in a bank at about 5.5% interest until the market dropped a bit.
Invest 30% spread between BHP, Westfield, Fosters, Woolworths, Fletcher Building, Telecom NZ, Colorado Group, AWB, Funtastic and Ridley.

Shares that pay good dividends that are either market leaders (almost monopolies) or undervalued. I'd reinvest the dividends and hold onto them for the next 10 years.

If the sharemarket dropped by more than 5% I'd invest more in Aus shares, if it rose more than 10% I'd consider selling some that I deemed to overvalued..

In 1 or 2 years time I'd look at investing in property in Sydney, if I deemed it to be fair or undervalued (which I don't now).

After 10 years I'd hope to have tripled my money.

My strategy would be reduce brokerage fees and tax. I would not plan on selling any shares unless they were clearly overvalued and I'd held onto them over a year for tax reasons.