Investments For People In Their 20s

Carnalpleasure
Carnalpleasure

What are some reasonably yielding assets with good liquidity? As a minimum wage worker I feel I have a higher marginal utility for every dollar than the average person, investing won't be worth it unless I recoup that premium. But to do nothing at a time of low interest rates is the same as wasting money isn't it? The market is panicking, doing nothing may be a valid play.

But there's also the overwhelming neccessity of doing things in life, things which will inevitably require money. I don't want to miss out on things I can afford due to lack of liquidity. Every opportunity is a networking opportunity, which I desperately require.

Maybe I should just play the options market and forget about taking actual positions altogether.

All urls found in this thread:
http://thismatter.com/money/investments/capital-allocation.htm
Snarelure
Snarelure

@Carnalpleasure
You have come in at the perfect time. Stocks are at their all time highs, everyone and their mother is predicting years of sideways movement. Your more then likely going to lose everything.

WebTool
WebTool

@Snarelure

I take hedged short positions. How fucked am I?

StonedTime
StonedTime

@Carnalpleasure
If you don't have a significant nest egg them don't even worry about it. First priority is saving 12-18 months worth of exenses.

eGremlin
eGremlin

Short assets in tech and housing markets.
Buy gold and sell it when the next crisis occurs.
Buy property, nobody can confiscate that from you unless you live in the third world or have a shit job.

PurpleCharger
PurpleCharger

@WebTool
Do you mean you take a short position then buy calls to try and minimize upside exposure? This is common practice and people lose all of the time doing this, but people also win all of the time doing this. It's more about the actual investment and less about the investment technique.

CodeBuns
CodeBuns

If you have no money invest in trackers and government bonds.

Ignoramus
Ignoramus

@StonedTime

True, but I don't have any fixed expenses right now. I own half of the property I live in, but cannot sell for seven years.

Besides, I'm talking about liquid assets here. In an emergency I could flip them for fair value (for example bitcoin can be exchanged immediately), therefore as a rational investor I should have no bias between money and assets of equal value.

Dreamworx
Dreamworx

@CodeBuns

bonds

negative real interest yo

Sir_Gallonhead
Sir_Gallonhead

@Ignoramus
The point of a safety net isn't just that it's liquid. It is also the least risky. Liquidity won't feel like an upside if an emergency happens and you have to cash out your positions at a loss.

w8t4u
w8t4u

cs:go skins

SniperGod
SniperGod

@Sir_Gallonhead

As long as the losses do not exceed opportunity cost I'm cool desu senpai.

BlogWobbles
BlogWobbles

@Snarelure
Stocks are at their all time highs

What's your point?

The s&p is always at its "all time high", pic related. if during any of those years you said "Lol look it's at its alltime high" you would've missed out on a lot of gains.

PurpleCharger
PurpleCharger

@BlogWobbles
Technically it's not always at its ATH dipshit. I see the case you're attempting to make for investing in indexed tracking mutual funds as opposed to constructing a complete portfolio comprised of risky corporate stocks mixed in proportion with risk-free treasury securities. But you're position is only a good idea for the investor with less appetite for risk (the minority of this board).

Fried_Sushi
Fried_Sushi

@PurpleCharger

I find it interesting you advocate a mixed portfolio, when the market in general operates as a mixed portfolio. All that wasted time that could be spent on the beach.

The true class of wealth is the leisure class.

Inmate
Inmate

@Carnalpleasure
is that faker??
who is that bitch beside him?

TreeEater
TreeEater

@Inmate

His gf, duh.

Skullbone
Skullbone

@Fried_Sushi
Index funds do not hold risk-free assets (treasury securities) in their portfolios so index-fund investing will not minimize risk for your entire portfolio unless the fund is bought and mixed in proportion to a risk-free asset.

Go read this:

http://thismatter.com/money/investments/capital-allocation.htm

The market does not operate as a mixed portfolio. A market tracking fund would be $SPY. SPY doesn't hold any investment in risk-free securities so the buyer of the SPY fund cannot have a complete portfolio buy only purchasing shares into the fund. You may get a return that you like but it could be greater with the same level of risk you are undertaking with investing in the fund.

RumChicken
RumChicken

@Skullbone

Why would anyone hold treasuries now? Returns are negative. You'd make more money stuffing it into a mattress and renting it out to hookers.

Ignoramus
Ignoramus

Buy MGT

Fried_Sushi
Fried_Sushi

@TreeEater
his gf is white? wth?
also lies, those players aren't allowed to have relationships. they prob gets ton of fan letters, but that's different.

Harmless_Venom
Harmless_Venom

@Fried_Sushi

I guess that explains why she they killed her. Apparently she wanted to go public with their relationship.

Evilember
Evilember

Who /cashhoarder/ here?

AwesomeTucker
AwesomeTucker

@Evilember

Enjoy losing 2% annually, not including unrealized, potential gainz.

JunkTop
JunkTop

@AwesomeTucker
wat is negative interest rate

New_Cliche
New_Cliche

@JunkTop

I don't think you understand how that works.

whereismyname
whereismyname

@New_Cliche
Explain it to me then. Im a saver, am i a bad person because i want to save money and just invest in secure trackers?

Stark_Naked
Stark_Naked

@whereismyname

It's a complex paradigm but it does not mean the government will pay you for holding cash. High interest rates are favourable to savers. With interest rates near zero or negative, you're not making any interest and only losing value to inflation (which is approx. 2% across the Western world).

So your 5,000 in savings is worth 2% less in real buying power by the same time next year.

You are being robbed of your wealth if you don't actively seek out growth and capital gains.

Soft_member
Soft_member

@Stark_Naked
Thats if i leave my money in the bank. Whats the point in saving money at 2% inflation AND the bank forcing me to pay negative interest rates

ZeroReborn
ZeroReborn

@Stark_Naked
You are being robbed of your wealth if you don't actively seek out growth and capital gains.

well yes, kinda. that is just oversimplifying. 2015 cash did better than any asset class for example

BinaryMan
BinaryMan

@Soft_member

But dollars are an asset, the dollar has been appreciating against other currencies recently, why don't you play currency markets?

VisualMaster
VisualMaster

@WebTool
If it is your own money then you are retarded. Only invest other people's money if you are going to take those types of positions.

Stark_Naked
Stark_Naked

@Carnalpleasure
The best thing you can do is invest in yourself and get a good job. Minimum wage is shit. Gotta have money to make money.

Deadlyinx
Deadlyinx

@Carnalpleasure
Get good at League of Legends and win multiple world championships

Carnalpleasure
Carnalpleasure

@Carnalpleasure
20's

That bitch is dressed like a scene fag teenager

Raving_Cute
Raving_Cute

@Skullbone
What do you consider a 'risk free asset'? Farmland?

Harmless_Venom
Harmless_Venom

@Evilember
Yo.

@AwesomeTucker
muh inflation
While there's inflation, my securities will continue to go up. If there's a global depression, my cash will gain value. Stay mad old economy investor.

Boy_vs_Girl
Boy_vs_Girl

@Ignoramus
21 here this made me 300 now have 500 in robinhood ballin

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