You're getting what is typical for a diversified portfolio. Over the past 20 years, you will find out of 10: 3 stinkers, 3 (multi)baggers, and 4 mehs. The real trick is to get out of the stinkers before it's too late.A year ago I put money into a "diversified" basket of 10 stocks. 3 of the stocks lost money big time and drag the 7 winners down so the overall return is negative. SNC is one of the stinkers along with a gold stock and oil stock. Gold and oil stocks stank in 2012. So, why do people say to "diversify"?
What do mean not at all?Not at all, I see firesale prices right now in the market and I want everyone to take advantage of it. the same thing happened in 2008/9, quality junior companies then rallied 10-20x in value during the next 2 years and now the sector has been hammered again a la 2009. bottom line is if you believe commodities are going higher these companies are a steal and are heading much higher. now, im a young guy so obviously I have a very high risk tolerance, my vanilla advice would be to have 10-20% of his portfolio in small caps and the rest id put in a high yielding energy trust. If he wants exposure abroad there are high yields abroad with solid companies. if he follows the conventional wisdom spread by the big banks and mainstream investment brokers he will get killed, these are the people who give out bad advice and sadly the chances are he will follow their advice. If he wants professional money management, I would reccommend europac canada, they have a diverse portfolio of funds geared towards commodities, and foreign stocks
He sure lost me when he said:Your advice is completely inappropriate for 90-95 % of all investors
Of course the absolute, single, best investment you can make is paying down debt. A guaranteed return there. If there is no debt then low risk, fixed income with as high a yield as possible and continue to ADD TO IT and he is off to a great start. But no one will be turning it into millions any time soon except at the Casino...that 50k could turn into millions easily within a few years its really that easy...
How the fuck do you know what is good for him? im recommending good quality companies that have declined up to 70% for no reason at all other than they are in the commodity sector and all have been hammered since the last peak in 2011. large caps and small caps the baby has been thrown out with the bathwater. commodity prices themselves are strong its just the stocks that have sold off bc fund managers were expecting tighter monetary policy form the fed which aint gonna happenWhat do mean not at all?
Your advise for the OP was inappropriate. Period
As you say "you are a young guy" and "I see firesale prices right now in the market and I want everyone to take advantage of it"
That tells me that you have not yet gained the maturity or wisdom to understand that there is no one single best investment strategy, which is suitable for all.
The OP may view his timeline, his expectations for reward and his tolerance to lose 25-75% of his capital in a completely different way than you do
You may be right and commodities may have the potential for superior gains, however your rational appears to based upon market timing rather than expected supply and demand forces which are the true drivers of commodity price movements.
This puts your advice in the "dime a dozen" category
If you are wrong this guy could get wiped out.
An expensive price for feeding your ego
Easy with the language unless you want this to get nastyHow the fuck do you know what is good for him? im recommending good quality companies that have declined up to 70% for no reason at all other than they are in the commodity sector and all have been hammered since the last peak in 2011. large caps and small caps the baby has been thrown out with the bathwater. commodity prices themselves are strong its just the stocks that have sold off bc fund managers were expecting tighter monetary policy form the fed which aint gonna happen
MSOG is basically a troll and a poser too. Anyone that seriously believes they can "easily" turn a 50k investment into millions within a few years has gotta be crazy.Hi there,
Thought i'd contribute to the whole MSOG debate.
Here's the thing my friend, I think you are just saying things to stir things up.
Let's not let the thread get out of control...............
Have a great weekend
Goodguy
His investment recommendations are more over-enthusiastic than crazy.MSOG is basically a troll and a poser too. Anyone that seriously believes they can "easily" turn a 50k investment into millions within a few years has gotta be crazy.
Well as an aside as everyone does have a right to their opinion, why not give us your top picks and I will put $50k on (paper trade) and eat humble pie in a couple of years when it has mushroomed into a couple of millionwhen gold stocks take off, theyll have p/e ratios in the hundreds just like facebook and linked in, itll be just like the tech bubble sell out when there is a buying frenzy and companies become extremely overvalued
I am not sure if your post is directed at meHi there,
Thought i'd contribute to the whole MSOG debate.
Here's the thing my friend, I think you are just saying things to stir things up.
Let's not let the thread get out of control...............
Have a great weekend
Goodguy
Question for you?My goal is to aggressively build wealth, then chase dividends
Hi there,I am not sure if your post is directed at me
If it was, fair enough,
It is not my intention to highjack the thread, however
It drives me nuts when someone recommends taking on a high level of risk to a novice investor
What is even more annoying is the inability to recognize an error in judgement was made
I have another question for youI don;t have all my money in small caps, only about 40%. .
A HUGE dive in the price of gold is indeed what the US fed will desperately....... so let's assume that the next rate cycle is up, what does that do for the prices of gold and oil? I definately think that part of the cycle is over. And when the US fed starts raising or expectations are built in of raising rates? Gold will take a HUGE dive.
Hi there,A HUGE dive in the price of gold is indeed what the US fed will desperately
try to engineer. Or how else it is going to buy back the gold that Germany plans to
repatriate without seeing the price of gold explode?
Raising rates is a possibility. But I think the fed has more to worry about its
impact than gold bugs.
You are the one that claims to be the investment professional! Show me the stock charts and the math to prove that that you can generate millions from a $50k investment in a few years. If you can't do that then you are just a poser, you should learn when to STFU!check some longterm stock charts and do some basic math.
That's no different than saying "I personally believe if I buy a Lottomax ticket every week, my numbers might be drawn. If that happens I will win millions".I personally believe gold is going to 5k or more this decade, if that happens a company like victoria gold is a multibillion dollar company with 8 million oz in the ground if that happens a company like victoria gold is a multibillion dollar company with 8 million oz in the ground, the mine will begin construction this spring.
Here is what Rick Rule says:rick rule is another guy to research, hes one of the leading experts on junior mining shares he speaks at every major conference
In the period from 1975 to 1981, I was making – relative to my age and experience – a truly stupendous amount of money. And I made the normal young man's mistake: I confused a bull market with brains. I thought the amount of money I made for myself and my clients was a function of my brilliance.
I learned the truth about the cyclicality of natural resources. You learn in school that these are cyclical, capital-intensive, volatile businesses. But until you've gone from pretty rich to being broke, you don't personalize those lessons.
The collapse of commodity prices in 1982 disabused me of that. I went from being a very wealthy young man to having a fairly substantial negative net worth.
In one year – 1982 – I went from having an academic interest in cycles to understanding them viscerally, something I don't recommend for anybody else.
What I also learned digging myself out of that hole was that perversely, bull markets are very lethal. First of all, they lend themselves to hubris. They lend themselves to misinvestment as well as malinvestment. Rather than being afraid of making mistakes, you're afraid of missing opportunities.
While missing out on something is hard on my ego, making mistakes is hard on my wallet.
The businesses that I invest in are volatile, capital intensive, and risky, with long lead times. Most of my competitors are reward chasers. But I'm a risk manager. By limiting my risk, and being able to fight another day, my reward becomes assured. So what I'm trying to do is not make fatal mistakes. When I'm thinking about a deal, I'm looking at the probable return relative to risk.