good and bad investment

school and car loans are almost 3 trillion dollars added up I'm guessing the best way to profit from it is shorting them? by the divisional companies? or is there a better way?

also is there any other investments out there that are good? I listen to the newest podcast about investing in Iran and India.... and if I understood him right he said short oil? and bunds bc retirement

thanks for the help and sorry for all the question new to the forum and want to learn as much as I can

thanks again

Comments

  • can u explain this in detail ...
  • well basically I think everyone one that listen to this podcast thinks/know the market going to crash at some point just a matter of when... I thought and heard that the car market will kinda be the next house market like in 2008... but I know there will be alot more going wrong this. I guess what it boils down to is what will be the best way to make money when it crashes??

    was thinking school loans will be hit hard and the car loans will be also.. and I know theres other and if there is other that are better and don't care to share that be nice..

    was thinking gold but looks like gold already up.. I know that don't mean it can't go hire.. but I'm not really a gold person

    just looking for advice and idea for the future..

    thanks for the help, advice and time
  • I am sorry I left my crystal ball at home :)

    Generally I would not recommend making broad macro predictions and trying to make money on them unless you are a hedge fund manager.

    It is better to look at the past for companies that have historically done well but are seeing some temporary downturn for buying opportunities as they will revert to historic norms. Trying to short anything is pretty risky especially when you look at the long term trends of equity prices.

    You want to find something that will go up in the mid to long term and be patient and rational in your reasoning.

    You want to look at companies right now and say is this a good price. Do lots of research and maybe write down your reasoning or share it with someone else before jumping in. No one can predict all the variables, keeping it simple and limit your risk.

    I think most student loans are default proof in that you cannot file for bankruptcy on student loans I believe at least in Canada.

    Also car loans are relatively small compared to houses or corporate loans so the default risk is also minimal. There may be cyclic risk to the car market in general but a lot of people on here I believe are playing on Fiat Chrysler in the hopes that jeep and maybe dodge caravan become new mainstays in the growing consumer economy of China.


    Area's of value that you may find good companies trading at reasonable prices currently

    Pharmaceuticals and Biotech

    Industrial, rail manufacturing, some auto parts

    Certain hardware, technology and networking companies

    Some gold, energy and and mineral companies

    Retail consumer goods

    Airlines

    Most consumer staples are very overpriced right now but may offer more security from market risk

    These all carry certain amounts of risk so look for strong balance sheets, some moat on the companies. Look at other stronger industries and debt to see if you can find reasonable value to build a complementary portfolio. Bonds don't have attractive yields right now but you better believe they will perform much better if the equity market starts to decline.

    Another thing I recommend is look for strong companies you like and follow them for an opportunity to enter the market. If you are young you have time on your side then use your mistakes as valuable lessons and spread out your risk by not putting more than 5-10 percent of your savings in a position. If we do have a large correction or greater economic downturn make sure you keep a good reserve to get into positions you like. It is a lot easier to get in and out of a rising stock whereas down ticks happen so quickly you may miss them unless you are sitting at your computer and watching BNN all day.

    Also I recommend the free course on BuffettsBooks.com if you have not already taken it.

    If you don't want to do the work just stick with indexes.

    Good luck
  • wow didn't expect that good and long of and answer thanks!! i do more research and u asking if I was young I'm 23 and trying to set my future up as much as I can so it all has time to grow I start trading when I was 13 but never made much mostly loosest until the passed few years but I learned a good bit!! that was all short term thing trying to do more long term been looking into etf and thing but thanks again ill look more up and get back with you
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