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Safe Investments

Now a days it’s really hard to find any decent safe investments. The old buy and hold routine doesn’t work in these trouble times, and as for trying to day trade, you’re taking your hard earned money in your own hands.
A safe Investment right now seems to be in CD’s, bonds and Treasury bonds, but the problem there is that the return is quite low. After having your portfolio, need it be a discretionary one or your 401K/IRA, beaten up as bad as it has in the last year. Some may not want to deal with a 3% return on their money and have it tied up for nine months or longer to get it.
High yield safe investments like junk bonds aren’t any better. They involve alot of risk and again after what we’ve gone through, do you really need more risk?
The only safe investment advice that I would be comfortable giving you is to do your research into strong companies (of course you won’t know they’re strong until after the research) that have been beaten up because of the market as a whole brought the price down.
One company that has taken a beaten because of the hedge fund redemption is Quanta Services Inc. (NYSE:PWR). The company has a great balance sheet and has orders out until 2010. They are expecting great numbers in this quarter. Thursday the stock hit a new 52-week low at $12.27. A level that hasn’t been seen since February of 2006.
I don’t consider too many stocks to be a safe investment the way the markets have been moving. Monday morning the DOW opened at 9,141.01 and the intra-day low on Thursday was 7,979.60, but then closed Thursday at 8,835.25.
The safest investment right now might be not investing.

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2 Responses to “Safe Investments”

  1. Finish the rent or own debate. Rent to own homes serve an important purpose in today’s gloomy economy: They give us the opportunity to determine if they’d be happier as tenants or homeowners.

  2. Kamal says:

    the acquisition ROE has to be at least 15%, much higehr than 8.64% -13.56%… Although HSBC gave them the go ahead for the acquisition and I believe HSBC is very cautious about these things, esp after the Household incidence, Ping An is not getting much of a discount on fortis. Any comments?RC

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