Aug 22

Are there any safe investments today? 2

Whether investing in stocks, real estate, oil and gold futures, derivatives, rare collectibles, or US Treasury bonds; at some point, there needs to be a transaction that leads to cash income.

Whether that transaction is from ongoing operations and sales (as in a restaurant or Broadway play), or a one-time payoff through property asset liquidation, is key to making money.

So, let’s quickly analyze a few common investments available today by examining what conditions need to exist to make positive income.

The conditions we need to consider are the amount of investment required (i.e. how much?), and when will a transaction that generates positive income occur (i.e. how long?).

Individual Equities – Going Long

Whether you are a bull or bear (bet long or short) on a stock is almost irrelevant. Everyone knows that when you go short on a stock, you are counting on any price improvement to be temporary.

The short holder only needs to sell when the stock makes a small move, up or down. What people don’t often realize is that even when you go long on a stock, dividends aside, the sale of that stock is still required to realize net positive income.

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