What to invest in for the long term

Discussion in 'Trading' started by abe12345, Nov 12, 2008.

  1. abe12345

    abe12345

    Hello. My brother want to invest in the market and I was wondering what he should start buying. I told him now is a good time to get involved and a good strategy is to dollar cost average in good companies, ETF's, and perhaps some heavily beat up sectors like the financials and housing.

    1. Some good companies I might tell him to look into are Google, Apple, Coke. A guest on Bloomberg recommended CBS as a company that is not likely to go bankrupt, is discounted heavily, is still paying dividend, and will likely survive and rise again. Please comment on these stocks and let me know if you have any recommendations.

    2. China etf FXI I feel most confident about. It is at about $24 right now, high was $72 a year ago. When the bear market ends I feel China will be one of the top growers. Only concern I have about FXI is what if it does not follow the Chinese market sufficiently, for example, what if one or more of the 25 stocks represented by FXI gets beaten down or bankrupt? Are these 25 companies sufficiently representative of Chinese market?

    3. I don' know much about the Financial and Housing sectors except they have been beaten down the most. Is it a good time to start dollar cost averaging into Financial and Housing sectors?

    Really I've been involved in the markets for about 1 year. Before that I knew almost nothing about the market. Mostly I'm involved with trading the Dow, but I watch Bloomberg during the day and read about the markets so naturally I have also become interested in stocks, other markets, and forex. But since I'm not very experienced and I know there are more knowledgable people here I was curious what you thought.
     
  2. sumosam

    sumosam

    education
     
  3. abe12345

    abe12345

    Another investment I was wondering about is Oil. Jim Rogers said it will be back up again.
     
  4. Oil is not an investment, never was , never will.
    Jim Rogers may be right if a new range is established,
    say 55-120 instead of 20-55.
     
  5. Long term, we should see serious inflation, so I think its the commodities (oil, ags, metals) that will outperform.
     
  6. Oil and Oil Companies are a great investment, at these levels.

    Oil could go as low as 30 to 40 a barrel.

    Don't bottom pick and accumulate at 50$.

    Free and Alternative Energies will never be allowed to compete with oil.

    Guaranteed.
     
  7. OIL,

    Been buying since 85 level. Slowly dip'n toe in each new low.

    Outlook for Oil in the next 6 months, 90 pb. Unless a Geo-political situation hits sooner.

    3-6 year outlook 120 or near there.

    Best opportunity in my life time to go long oil...
     
  8. In this case we will see stocks 1.5-2 times higher in 3-6 years.
     
  9. abe12345

    abe12345

    Ok. So oil seems to be getting alot of supporters. I think we will go with oil.
     
  10. Are you addressing trading or investing? Both words were in your post, and they are at opposite ends of the market.
     
    #10     Nov 13, 2008