Investing

[meyekey]

I know this forum isn't really about investing, but from all the things I have read, it seems like there are alot of smart people around here.

So here is my question.

I have about $2500 that I am looking to invest for short term (2 years). I have never really invested before but I can't help but thinking there has to be something better then the 1.5% my savings account gives me.

If you had $2500 to invest, what would you do with it?

[Buktoof]

Depends on what you consider investments, Im guessing you are talking stocks. My work related retriement is is a lifecycle fund where it is automatically adjusted from high risk (now) to lower risk as I near the retirment date (2040). My "play money" that I use on Scottrade I chose to invest in things that everyone needs and they are limited resources. The two things that fit the bill for me was food companies like Smithfield Foods, Tyson Foods, Sanderson Farms, and Pilgrim Prideand energy stocks, more specifically, oil and natural gas. For energy I went with companies that are based here in the US and doing their work here in the US as well. I looked at several companies that are working the Williston Basin. This area has brought me very nice returns as I have had one stock go from 5bucks a share to currently 30bucks a share. Then I rounded it off with companies that make products for the healthcare field (drugs/equipment) as Im familiar with that field and use the products myself everyday. This helps as I dont have to do much research as I know what companies have a great market share (for instance 3 companies basically have a monopoly on albuterol inhalers since CFC are banned in US now and only 3 companies have their new HFA inhalers FDA approved).

On a side note I have trimmed alot of my holdings as I just dont see how this market is at the point it is considering almost double digit unemployment and am currently holding 25% of my play money in cash and have limits set for auto sell if the market decides to have a pull back (which should happen but ill ride the wave of good fortune till it does). Whatever you decide do your research/homework and dont mess with penny stocks.

Last but not least . . . Sell when everyone is buying and buy when everyone is selling. Right now everyone is buying. . . . just my 2 cents

[1Admin]

In this market 2 years is a short horizon. Personally I would only look at very conservative investments.

I think the market is likely overpriced right now. Summer of 10 would have been a good time to get in (around Dow 10K). I'm not holding much in the market right now. And my cheapness kept me from buying back in near the summer bottom. I set a mark to buy in at 9,500 on a couple funds I trade regularly. I should have been more flexible and bought in at 9800. One of those funds was around $10.75 NAV then, it was recently at $15.89 That's almost 50% inside of a year.

[rockriver]

i'm getting a little "long in the tooth." and have made some bad money decisions.
can't risk it like i used to.... and i didn't think things like soft drink companies, phone companies,
were bad risks!!
so ...
--
my recommendation.
(all the below based on my humble opinion!)
buy long term food as cheaply as possible... food prices are going up.
buy hard goods... inflation looks likely. boots, clothes, a trailer for your truck. a bicycle.
ammo, weapons, high cap mags.
rr

[Patriotic Sheepdog]

Tangibles, tangibles and more tangibles are the only thing that will hedge inflation...Inflation is occuring despite what the .gov is telling you. I don't know where you live or your situation, but farmable land, beans/bandaids and bullets, long term food storage like rockriver said, nickels, junk silver, bullion(specifically silver which I feel will grow faster than gold) spare mags for your firearms (high-cap if your state allows) are a few things I would investigate.