i come from a backround of managing money, and my fathers still in the business. i agree with vehn, its tough to reccomend treasuires at historical 40 year prices, even though i have been saying that for awhile now and they keep rallying, but still dont think its suitable for a passive investor. i got my last batch of clients in tresuries early this year. personally, what my father and i have been reccomending is following the dividends and yields. look for good companies that are paying nice dividend, this can provide a floor for the stock when value players come in, helps offset depreciation, and at least your getting paid something while you sit. Furthermore, in a time of questionable earnings, cash flow is easier to follow, a div is tangible, and indicative of financial health as they increase. look at it this way: you could be in the bank making 1% you could tie your money up in a 10 year note and yield 3.6%/yr you could put your money in div. producing securities yielding 5-6 or even 8% plus. where do you think you will be best off in 10 years? its no coincidenc div. paying stocks are outperforming the market, investors are seeking something tangible and easy to understand vs. no div and complex earnings. and look at other securities rather than just common stock! anyway if you are interested PM me and i will give you some suggestions/examples.
its easy to dimiss people asking advice and simply say no or have a policy that you do not give out advice, as many here have suggested. but keep in mind, especially when it comes to your FAMILY, they prob. know nothing or at least less than you or maybe they got burned by a lousy broker and that is why they are seeking your counsel. offering advice doesnt mean you have to be right, just offering what you, soemone more educated in the area, would do in their shoes. "prudent man theory" Most of you out there have to have a family member or friend with a 401k or bum fund or something and these peolpe need HELP, especially b/c the markets/economy could turn even uglier. a lot of these people are scared or acting on bad advice, i see it all the time when i was in the business and it was sad to me b/c a lot of people told me they did have a relative in the business that wouldnt help them so they did stupid, easily avoidable mistakes. take care of your family, help out your fellow man! (at this time i will step off the soap box and do not plan on taking it out again)
Oopps, I just read in the paper that he had compounded at 14% over last 10 years I think it was. I can't vouch for him, haven't followed his timing picks etc and probably for that reason shouldn't have mentioned him. He seems pretty sensible however, listening to his radio show.
tell'em to put it all in gold bullion and watch their expressions!!! then after you finished laughing tell them to ladder some CD's. giving investment advice is a lose lose proposition. unless you're getting payed for it why put yourself through the potential guilt that you may feel if your advice tanks!!!!
i like ford's convertible and preffered offerings too. the market is acting like nobody will ever buy another car again! for the longer term and the brave this could work out. personally i wouldnt touch it near term, and def. wouldnt buy there common.
today shows you what i ment when i said you can lose a lot of money in bonds last week.bonds getting smacked.if you put your mother in longer bonds last week, she is getting stock market type losses today.