Sunday, March 1, 2009

5 Great Investments Other Than Stocks????

I just read an article that suggests five investments other than stocks that the author considers great. She thinks that junk bonds, commodities, currency, hedging Treasuries and cash are great investments. What is her definition of great? These all seem like safe investments to me. I don't think you can expect any double digit returns from any of those any time soon. Cash is paying what, 2.5%? Last year commodities rose only 5.8% despite corn and wheat setting record prices. Currency trading is very risky and very complicated, something I would not recommend to a novice investor. Besides with all the government bailouts we're seeing worldwide, how is money a good bet. These governmennts are going to print more money, whenever that happens you can bet inflation will follow and your money will be worth less. Junk bonds, hmmmmm, we've been there before. All the government stimulus/spending will not make a bad company into a good one. I'd stay away from junk and municiple bonds, too risky for me. To me the only Great Investment out there right now is Real Estate. She does mention Real Estate in the article but says it is too risky because she thinks there are too mnay homes on the market right now. That is why it is such a great investment. Prices are so low due to all that is on the market. People need to live somewhere. We find deals every day that have over a 20% cap rate. When you can get in for around $40,000 and receive over $1000 a month in rent, isn't that a great investment? What is it going to take for these people to realize that this is the best Real Estate market for investors that we've seen, period. You can buy for pennies on the dollar and the rents have not gone down. We rent section 8 all day. We get paid by the government direct deposit every month on time. What else could you ask for? Invest in Real Estate today, you won't regret it. It really is the only GREAT Investment out there right now, especially in Atlanta.