$300K from Overseas Property Sale where best to invest for 12 Months

Discussion in 'Fixed Income' started by 488spider, Jan 14, 2022.

  1. 488spider

    488spider

    I am selling an overseas property I own and wont be investing the money in another property for 12 months. I have never bought any bonds or fixed income assets. Where the best place to invest the $300K for 12 months. I already have a stock portfolio and trading account so not looking to add any of the funds from the property sale to these accounts. Any feedback appreciated.
     
  2. how much fluctuates can you stomach over the next 12 months?

    5%, 10%, 20%, 50%?
     
  3. SteveM

    SteveM

    Honestly, if it were me, I'd probably keep $175K in cash, $75K in high-yielding commodities stocks, and $50K in speculative names that have been pounded down -75% or more over the last year.....there is probably lots of value in speculative biotechs, SPACs, and other tech that has been relentlessly sold in recent months. I recently bought a basket of satellite companies for this reason.
     
    Nobert likes this.
  4. 488spider

    488spider


    10%
     
  5. 488spider

    488spider

    I dont want to invest any of the $300K in stocks as have enough invested in stocks in my 2 other accounts.
     
  6. You'll want higher yielding, maturing, assets. Can you buy bonds directly? I'd look into leveraged loans (not funds!), high yield bonds (just under IG, and again not funds), and to a lesser degree alternative risk premia assets.

    For leveraged loans and bonds, tie the maturity to your liquidity need (1yr), and this should represent most of your assets (70%+). For the alternative risk premia assets, allocate between 5-8% ideally across 5-6 types of non-correlated risk premias.

    When you look at alternative risk premia ETFs or Funds make sure to assess the correlations they have with the SPX. You want things that generally move sideways and a bit up over time and pay a 3%+ dividend yield. You do not want things that have lots of volatility.
     
  7. Nobert

    Nobert

    EBS was a decent catch recently.
     
    SteveM likes this.
  8. newwurldmn

    newwurldmn

    I would invest in a 488 spider. Exotic car prices still going bananas.
     
    ElCubano likes this.
  9. I've been investing in farmland. excellent inflation hedge and a little annual yield
     
  10. newwurldmn

    newwurldmn

    how do you invest in farmland? Are you buying actual farms?