Poll: Which is the best investment

In your opinion which is the best investment of the ones listed.

 

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Bonds realistically. Everything else is a gamble.

 

The poll is based upon a loaded question, in that it assumes there is a best investment. From a true investment perspective, all of the assets listed could be made part of a long-term, negatively-correlated, diversified portfolio.

I would say all of them are valid investment assets, but none should be highlighted as the "best", as that opens a person to unwise exposure in a particular asset class, as some will interpret "best" to mean "only" and thus neglect the others, thereby not being at all diversified.

 

it depends on the price, date, amount of time invested, situation,etc.

 

In your opinion which investment option offers the highest returns with the least amount of risk?

 

The question has no answer...too subjective. :scratch:

However, on average, I would have to say Stocks.

 

Bonds are not a gamble? What happens when you buy municipal bonds and the city declares bankruptcy like San Bernadino just did?

Generally, there's less risk with bonds, but then again, much depends on the rating of the bond, which also affects the interest rate. Higher risk bonds carry higher interest rates.

Everything is a gamble. The higher the risk, the higher the potential returns.

 

I like them all in balance , it also depends on your age , income and lifestyle and what you really want out of life . If young I'd go with stocks that are well researched and diversified , but at my age 58 I'm going more with bonds and low risk stocks . Of course I have my coins , but that's a minor part of it plus some gold and silver but really not that much .

 

Ok...

It was 2 oclock. The wind was blowing from the east. A gentleman in a 3 piece suit and an accent that of Sherlock Holmes approaches you with a briefcase. The contents consist of $500,000. He will hand over the briefcase under the stipulation that you invest in one of the following. Their was no mention of diversification. Which do you choose?

 

That sounds like it was a risky situation to begin with , when I think of bonds , I think of Guaranteed CDs Like a bank issues backed by our Gov .

 

If I had to invest in only 1 of them and had to do it today, it would be a diversified real estate portfolio.

 

What's the timeframe?

 

Hmm. Timeframe. 10-20 Years?

 

Or if you invest in a bond fund, then the interest rates go up.

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but basically, what this guy says is correct. The high the expected return, the higher the risk. Each of the categories mentioned carries its own potential risk and return. Don't think any of them could be declared "the best", which is why the "best" investment is a diversified portfolio. I happen to invest in all of the categories.

 

When you bring real estate into the picture, it further complicates things. Real estate, especially on a small scale like one rental property, can be financed 100% through a very low interest bank loan. (Buy a house, live in it for a couple of years, then buy another house) So let's say you buy a house for $200,000 and rent it out for $2,000 a month. At current rates, the rent would more than cover the mortgage payments. So, assuming property values at least keep up with inflation, you're earning a 3% return on the banks $200,000. Pretty good! But, if property values drop, you could be upside down in the mortgage. At that point, even though you have little or no money invested in the property, you are still liable for more than the house is worth. What kind of person are you? Would you keep it and ride it out? Would you sell it and take a loss? Would you walk away and let the bank worry about it?

If you have the stomach for it, real estate can be very lucrative. However, it requires more of an investment in time and effort, and has more liability than most other types of investments. (Liability as in getting sued by your tenants for their kid sticking a fork into an outlet or whatever...)

Like rzage, I believe the best bet is everything in moderation. Unless you are like Warren Buffet and managing your investments is all you do...

If someone walked up to me with said briefcase, I'd probably pick one at random and rearrange the rest of my investments to maintain some semblance of diversification.

 

Ah, and what an investment those currently are. There's nothing quite like earning less than you're losing through inflation.

If you want to see any sort of decent return, you will have to assume some risk. It really is as simple as that.

 

All of the above, except for coins. TC

 

Can't beat a deal like a 401 K. You invest in a kickback for when you retire PLUS the employer adds to your investment, increasing your Portfolio each month.

Dave

 

until you take the huge tax bite on withdrawal.

If you have the money for it, doesn't hurt to contribute to a roth as well. Max is only $5k/year, so not like you could over contribute to it.

 

I respect Treehugger's opinion on real estate, but I would choose stocks. I think real estate has had a decent run, (farmland, etc). I do not think real estate would be bad, but I would prefer to put that money in a balanced stock portfolio.

The other HUGE aspect not talked about is when you will need this money. That changes everything, because the shorter the timeframe the more dangerous variability in returns would be.

Like others have said, there IS no "right" answer. If there ever was, the price would go up to a point where it no longer was the obvious choice. Markets have a way of arbitraging away above average opportunities.