Where would you invest 25,ooo if you where looking for short term investments (<3 yr.)?
Question:
With the sustained grow in housing, would REITS be wise, or why not
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Answer:
gold is alway very volatile. I prefer it as a hedge rather than an investment. And I prefer gold mining shares to gold. A better bet is oil. People can live without gold. They can not live without oil.
To present you with sound advice, I would need to know your acceptance to risk, what per cent of your total assests does $25,000 represent, how old you are, what your annual income is and whether you have dependent children.
Assuming that you wish to assume average risk and that $25,000 represents 80% of your total liquid assests and that you earn over $50,000 a year and that you are under 30 years old and that you have no children:
I do not recomment REIT's. Real estate is way overvalued in my oppinion and very subject to interest rates.
Give some thought to these potential investments:
Home Depot-HD. A solid company trading at a very reasonable price with a execellent track record.
China Mobile-CHL. There is more growth in China than any where else in the world today. CHL is a "relatively" conservative way to play the Chinese market.
Canon-CAJ. An outstanding Japanese company with solid growth prospects and Japan appears to be turning around.
Conoco-Philips-COP. An oil stock, only one of many. However, if the price of oil drops below $50 a barrel within the next 3 years, you will loose money. That might occur in the event of a financial collapse due to a snowball of mortgage defaults. A good possiblity.
If that does occur, your only safe bet is T-bills which currently pay 4.7% for 6 mo.
real estate
Your time horizon is too short for stocks (assuming you'll need this money in 3 years to spend). A good choice would be a 3 year CD from GMAC Bank, ING Bank or any other Internet Bank insured by the FDIC. Go to: www.BankRate.com.
A short term bond fund could also be an answer. But in this bond inviorment. you could have less then what you started with in 3 years.
in stock market?
REITS have had their run. With the Fed's tightening coming to an end, look at quality bonds. Check out ACG on NYSE.
We should discuss your finances in private. Drop me a line. I can help you for free because you have a very small amount to invest.
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