Investing!!??!

[BBB]

Folks,

I appreciate this isn't really a true trading thread, but I believe it is related to money management never the less....

I am in the situation where I want to look elsewhere to park some of my hard earned cash. I currently have a dollar account with a US broker. This means I am reluctant to bring large amounts back to the UK as I will get stuffed on the FX rate. I am only bringing enough back in to pay the bills, beer money, new tyres for the Lambo' etc (lol). Setting up a FX account (GBP/USD position) to hedge is a choice I am pondering, but dont think the dollar will fall much longer so I will get stuffed again if I do this now.

I don't want to leave the excess cash in my trading account, as I know I will just trade with larger and larger sizes (lack of discipline!) which exposes me to undue risk and other factors. Besides, should disaster strike, my cash stash means I can always start again!

I want some other US based assets (stocks?) in which to park some cash while I wait to bring it back home to Daddy. The problem is I don't know the first thing about long term investing, and quite frankly, the thought of holding anything beyond a week scares me to death as the future is unknown. However, I could start small while I build my confidence. Anyway....

Does anyone have any recommendations as to where I should put the money? I'm not asking for share tips here, but ideas where I can begin my search. I was thinking along the lines of the Dow Dogs Theory, buying stocks in investment companies with the highest yields etc...

All suggestions much appreciated.

 

[ChartMan]

Buy a Florida villa and rent it out?

 

[BBB]

Ta CM. Thats a good idea, but I'm looking to be able to get out quickly when the time is right - which is why I was thinking towards markets. Maybe a futures spread like the TED or a crack spread (oil) may be an option?

As a Dow master, do you have any experience/advice of the Dow Dogs?

 

[Grey1]

BBB,
I know exactly where u coming from .. I have few long term postions myself all based on Fundamentals.. In fact I only use fundamentals for long term investment (my stocks have been doing exceptionally well.. ,

I can not tell you what to buy but investing in correct stock using fundamentals is rather simple.

If I was you I would not invest much in tech stock and would research the defencive pharmaceutical stocks..

Regards

 

[BBB]

Grey1 - Thanks. Are you hinting that sector rotation should be combined with fundamentals?

What fundamentals do you believe are good, and which are meaningless. My main concern being that there are several different formats that companies can submit their reports, and often misrepresent sales data etc. This makes objectivity difficult.

what do you call long term?

Do you still ditch the position if i goes against you by x%?????

Any good websites you regard? I've looked at Zacks but it seems to just pump stocks at you.

 

[LevII]

BBB

For my part, nothing extraordinary. Good sustainable rising earnings and sales. Realistic debt/interest and a good chart to 'fine tune' entry.

2 of the best (and most profitable) reads I have had are Zulu by Jim Slater and O'Neil (Canslim).

If of any help, at www.aaii.com you will find screening software that takes all the hard work out of research. Much like company refs but a fraction of the price.

 

[BBB]

ta levll. Much appreciated

 

[jonnyy40]

Have recently purchased 'Intermarket Technical Analysis' by Murphy.Do any of you use Intermarket Analysis as the basis/part of a strategy? (eg Spreading Bonds against Commodities?).
Have any of you taken the book (or this area of endeavour) further,so to speak.
Can anyone suggest any internet links?

 

[wysinawyg]

Bit late, but just seen an interesting suggestion that I thought relevant to this over on TMF.

Buy UK stocks through ADRs. Probably a bit easier in some ways for you to come up with ideas and you get to keep the dollar funds whilst hedging against FX moves automatically (although obviously taking on share specific risk).

wysi