Where are people investing?

wombat42_2

cagey76 wrote: »

Wombat, I agree with the gold price suggestions.

Gozomark, google for something like "President Franklin Roosevelt gold dollar revaluation", would make more sense than me trying to explain it here.

I forgot to say that the dollar may well slump in 2009 which alone would do wonders for gold. Also any future inflationary pressures would be great for gold.

cagey76

wombat42 wrote: »

I forgot to say that the dollar may well slump in 2009 which alone would do wonders for gold. Also any future inflationary pressures would be great for gold.

and I think Silver could also benefit, maybe even more so.

wombat42_2

cagey76 wrote: »

and I think Silver could also benefit, maybe even more so.

It is possible. Silver is more volatile so it exagerates up or down movements. Incidentally Blackrock Gold and General incorporates about 20% silver as the gold producers also produce silver.

cagey76

wombat, any more natural resources / commodities take your fancy.

StevieJ

Good article on Bloomberg relating to the amount of cash on the sidelines waiting for a profitable home.

http://www.bloomberg.com/apps/news?pid=20601213&sid=aHYVLN8ZJtsc&refer=home

jon3001

StevieJ wrote: »

Good article on Bloomberg relating to the amount of cash on the sidelines waiting for a profitable home.

http://www.bloomberg.com/apps/news?pid=20601213&sid=aHYVLN8ZJtsc&refer=home

More on the same theme:
http://www.ft.com/cms/s/0/d726654e-d5d5-11dd-a9cc-000077b07658.html

However, only 29 of the top 100 global companies by market value have net cash, according to analysis by the Financial Times. But those that do should be in a strong position in a severe downturn that is causing companies to scramble to conserve cash.

The list is led by four financial institutions with Warren Buffett’s Berkshire Hathaway at the top with $106bn in net cash, defined as cash and short-term investments or marketable securities minus debt. Strikingly, the next three positions are filled by Chinese banks with Bank of China, ICBC and China Construction Bank having $101bn, $89bn and $82bn, respectively, according to data from Bloomberg.

beingjdc

I'm currently at

31% Premium Bonds (will cash some in gradually over the coming year given the atrocious new odds)
30% Cash ISA (fixed at 6.5% until Spring, then God Knows!)
14% Instant Access Cash Savings (varies somewhat through the month)
20% Equity ISA, in miscellaneous international funds, mostly share-based but some Corporate Bonds. Plan to increase this substantially in the new tax year.

The rest is a mixture of netting out rental deposit, monies owed and owing (credit card vs household bills) etc.

cagey76

jon3001 wrote: »

More on the same theme:
http://www.ft.com/cms/s/0/d726654e-d5d5-11dd-a9cc-000077b07658.html

However, only 29 of the top 100 global companies by market value have net cash, according to analysis by the Financial Times. But those that do should be in a strong position in a severe downturn that is causing companies to scramble to conserve cash.

The list is led by four financial institutions with Warren Buffett’s Berkshire Hathaway at the top with $106bn in net cash, defined as cash and short-term investments or marketable securities minus debt. Strikingly, the next three positions are filled by Chinese banks with Bank of China, ICBC and China Construction Bank having $101bn, $89bn and $82bn, respectively, according to data from Bloomberg.

Good articles, if going in for the long term I think there are incredible deals around, but have no doubt its going to be a bumpy ride throughout 2009.

wombat42_2

cagey76 wrote: »

wombat, any more natural resources / commodities take your fancy.

Apart from Blackrock Gold and General I have the following:

1/ Marlborough ETF Commodity fund
http://www.h-l.co.uk/funds/security_details/sedol/B195JD8
I think it is excellent as it is one of the very few actively managed pure commodity funds. As it allows shorting the fund has slumped far less than commodities in general have in 2008. It must be the lowest risk vehicle there is for investing in commodites in general.

2/Eclectica Agriculture fund
http://www.h-l.co.uk/funds/security_details/sedol/B1XGDS0
Aggressive agricultural equity (producers) fund concentrating mainly in fertilizer and seeds

3/ Sarasin Agrisar fund
http://www.h-l.co.uk/funds/security_details/sedol/B2Q8L64
Very diverse agriculture equity (producers) fund including land and infrastructure

Many think agriculture is likely to rocket in the next few years, also credit crunch or no credit crunch people still need to eat.

Obviously commodities are a roller coaster and nothing is certain but there is a strong chance commodities will rocket for several reasons in the next few years and almost certainly with a 10 year horizon.

You need to be prepared to stay with commodities for the long term if necessary.

wombat42_2

Bump Bump Bump