On September 19 2021 17:24 pebble444 wrote: How do I invest money to get back a small return of it every month, while keeping intact the main sum, at a low risk?
Risk and return are correlated. Higher risk, higher return. If the priority for you is keeping the principal intact then a savings account which is guaranteed is best. But in practical terms most riskier investments that are left alone for a few years will exceed the principal. If I put $10 in the US stock market ten years ago it’d now be worth about $50. It would take a -80% crash to go back down to my original $10. That means that my principal $10 is safe in a -30% crash, like the 2020 covid one. But if you would think “the $50 is all mine now” and hate seeing it go from $50 to $35 then it may be too risky for you. Over a long enough time frame high risk becomes low because the higher returns compound at a much higher rate.
On September 19 2021 17:24 pebble444 wrote: How do I invest money to get back a small return of it every month, while keeping intact the main sum, at a low risk?
technically a savings account in a bank fits your description
Is there any risk, from outside involvement, National issues, that my account would be then in some ways manhandled?
On September 19 2021 17:24 pebble444 wrote: How do I invest money to get back a small return of it every month, while keeping intact the main sum, at a low risk?
Risk and return are correlated. Higher risk, higher return. If the priority for you is keeping the principal intact then a savings account which is guaranteed is best. But in practical terms most riskier investments that are left alone for a few years will exceed the principal. If I put $10 in the US stock market ten years ago it’d now be worth about $50. It would take a -80% crash to go back down to my original $10. That means that my principal $10 is safe in a -30% crash, like the 2020 covid one. But if you would think “the $50 is all mine now” and hate seeing it go from $50 to $35 then it may be too risky for you. Over a long enough time frame high risk becomes low because the higher returns compound at a much higher rate.
Well, what I am looking for is the lowest risk possible, and even blocking the money, over the course of the next 15 years; I would rather have the lowest return possible, with the lowest risk possible; now I understand that apart from keeping my money in my physical pocket, there is some risk regardless; however the country’s politics are stable, I heard that’s something to consider while investing;
Gives what you both said, maybe an investment for a return is not in my best interest; perhaps buying gold is a better idea? My priority is protecting as much as possible the initial lump sum; this leads me to another question, how do I protect over time against inflation?
if youre serious about absolutely minimising risk without concern for your rate of return then yes, a bank is probably the best place to put your money. even then theres no such thing as zero risk but the chances of a reputable bank losing your $100,000 is next to zero. i actually posted my savings account suggestion as kind of a joke because i didnt think you were looking for that sort of low risk/return investment, and also exactly because of your last question which relates to inflation. i dont know anything about italy's inflation and interest rates but if you took australia for example, putting money into a bank right now would make me lose money. so if you want to secure a return that is always higher than the rate of inflation then you need to look further than banks. still, you wont be looking at that high of a return rate and so what kwark said about investing in a stock market for 10 years would probably suffice.
But in theory if you have 10k in savings. And you use 10% of that in stocks (1k). You could potentially net more gains from that 1k in stock market exchange than you would if you kept the rest of your 9k in a bank to earn annual interest. With this comes your usual due diligence and HODLing when youre in the red (you will be in the red).
In a very simple/laymen term, the bank already uses your savings to build on their capital to swing their big dicks around with the market anyways. (Someone please correct me if Im wrong)
Overall my take on this is to invest in things that you believe are undervalued and hold a future. So when youre in the red, you wont be leaning towards selling at a loss (which you should never do if you did your DD). Again not financial advice
You could also look into money market funds, which are the same brand of minimal risk with a return on investment. A historically low one due to zero interest rates in the first world, but it can be storing your money with the government rather than with banks - potentially better. Could make it US money market funds if the prospect of keeping your money in USD is preferable.
Index funds or bonds for slightly more risk, and gambling on a new crypto coin for yet more risk, if those options interest you.
CDs, money markets, savings accounts etc. are what you’re after. Things that will never lose their value. Previous metals are a fairly speculative investment, you can’t spend them so you’re betting that someone will give you more for them in the future than today.
So Chinese real estate has collapsed it seems. Guangzhou R&F Properties has collapsed although executives have pledged a billion dollars in funding. And Sinic has dropped 87% and trading halted. Evergrande is still a raging inferno nobody wants to talk about.
Here's Bloomberg's Odd Lots podcast talking about Evergrande was recorded on the 15th, they have Travis Lundy who has been shorting the company for years.
I kind of regret following my usual monthly schedule and buying some funds last week instead of waiting a few more days until this whole Evergrande mess started hitting the market. But hindsight is easy and I'm not not bothered by the short term so not losing sleep over it.
Oil & gas look like they're doing pretty well lately. Not like 2010-era well, but up a fair bit for where we are now I guess. Haven't seen $4 gasoline since oil was in the $120 range, so something must be going right for those folks.
I doubt this Evergrande story is going anywhere. Bought a bunch of DJI calls yesterday with a probing sum. Tempted to go into palladium but nah. Still of the opinion that commodity derivatives are risky business. Finding coins made of that is hard and there's a premium of about 400 bucks atm.
EPT
