How much is your commission schedule?
I would shop a lot of high yield bonds. The stock market is going to be pretty iffy for the next year.
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Stock Market Picks
- Thread starter MKvUltra
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How much is your commission schedule?
I would shop a lot of high yield bonds. The stock market is going to be pretty iffy for the next year.
KingOfJericho
Go Kart Champion
I can't name specific bonds because I work for a high yield money manager but I would say that I'm bullish on the asset class as a whole.
PanthersNHL7
Ready to race!
lol i played that game twice in high school. it was pretty fun somehow, google was my main income
MKvUltra
I'm chasing perfection
$25 per trade
feel free to PM me its only going to be used in this fake game since I'm a broke college student :frown:
my07blkgti
I'll do it!!
At my company the brokers push ETF's such as DDM and UYG. I guess look into those.
KingOfJericho
Go Kart Champion
DDM or SSO are great for young people with a very long investment horizon. Especially at these levels.
Frank Rizzo
Trailingthrottleoversteer
There are no "high yeild" bonds available right now IMHO.
Buy when the market is down. Buy low sell high. If you think we are going to recover out of this mess, you should be going long on some mutual funds right now. I'm dumping the max in my 401k and 20% of my after tax dollars since October.
If you have to hold an individual stock, I'd split it between 25% QQQQ and 75% APOL. Apollo Group is the University of Phoenix and with so many peeps unemployed - I think there will be a resurge back into school. QQQQ is the powershares trust because I like it.
It's all a big crapshoot with individual stocks.
KingOfJericho
Go Kart Champion
Wow, that's a pretty uninformed opinion. The high yield sector is yielding an average of 18% right now and defaults are still hovering at historic lows (4%). Heck, even investment grade is yielding 500 over treasuries. Don't forget, you also clip a coupon every year on top of any price appreciation. High yield has never been this attractive.
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He only has until May for his investment project. Long term, equities certainly. 3 and 1/2 months? Stock market is gonna be bumpy if you ask me.
Frank Rizzo
Trailingthrottleoversteer
Sorry I meant available "to him". The project is only a semester. Also - he asked for stocks - not bonds.
What appreciation? ANY kind of CDO in this market is a poor choice given the current economic climate, hanky panky and when mark to market comes around methinks you'll be singing a different song - think Bernie Madoff. These things are dropping like a concrete cinder block in a swimming pool. Unless you can give some specifics on what exactly you have in mind - like a name or a fund??? You might be referring to an index.
OP-another good idea is Denny's restaurants or McDonalds. Tough economic times will cause people to spend down on lower restaraunts. You could see some short term gains
KingOfJericho
Go Kart Champion
I'm VERY familiar with this market and asset class. Unlike hedge funds and some structured products, we have to mark to market and have never done it any other way so you can save the Madoff rhetoric. The average price of a high yield bond is in the low 60s. This is not a secret. You buy a bond in the 60s and the market and company recovers, you not only get your coupon, but all of the price appreciation from 60 to par, provided you hold it to maturity which does not apply for this particular project. Also, structured products (CDOs, CBOs, CLOs) are a whole different ballgame and is not something we're involved with.
That aside, if you read the first post in the thread, you'll see that he can invest in bonds.
MKvUltra
I'm chasing perfection
Thanks for the tip, cramer was talking up MCD last night and I think it could be a solid 2 -3 month investment... I also just purchased FCX which is in the copper and gold sector and looking at the price of copper at $1.50 this is a good time to buy considering the prices have really nowhere to go but up
Also I would like to get into bonds but have no idea where to start this is what I can buy in the drop down bonds section on the program I am using LMK if anything is worthwhile, There are also treasury notes farther down in the drop down box
KingOfJericho
Go Kart Champion
Freeport McMoRan is a solid company. They bought Phelps Dodge last year so they are pretty much the leader right now. My father is a copper trader... until construction really picks up you'll be holding a rock but longer term it's a good bet.
If you can add current price to your chart there you'd have an easier time picking bonds. Buying a bond like the IBM long paper at $112 doesn't make any sense for your assignment but something like American Airlines (AMR) which is around $60 could yield you some return over the semester if the market takes a run. Take some risks and have fun with it.
Something I would look at for stocks: RIMM, GS
If you can add current price to your chart there you'd have an easier time picking bonds. Buying a bond like the IBM long paper at $112 doesn't make any sense for your assignment but something like American Airlines (AMR) which is around $60 could yield you some return over the semester if the market takes a run. Take some risks and have fun with it.
Something I would look at for stocks: RIMM, GS