8 Answers: Where is the best place to invest $20,000? Bonds? Stock market?
Question
I have 20k USD to invest and am looking for viable options to make a good return. I have read about t-bills which I think are treasury bills which are loaning to the government but that’s just like 2% and I’m looking to make more. Any ideas?
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Answers ( 8 )
Actually there are many options where you could wisely invest your dollar. Yet I am not sure now is the time to do it. In fact and because I am pressed for time I will keep this short. T-Bills could actually be a great place to be parking your capital because it is very likely that soon we will experience another recession, in the USA anyway, and that may well be the safest place to store your value.
Then once everything has blown over and stocks are at an all time low. That is the time to invest in an ETF or Index fund, for example buying the S&P500.
Or if you would like to beat the market then Joel Greenblatt’s ‘The Little Book That Beats The Market’ is a great way to do that using a similar system to Indexing.
Thanks John how would you sum up that we are heading to global recession?
Here’s a chart of the S&P.. what goes up must come down!
Attachment
Here!
Okay Well that is okay
At the moment an investment in stocks would be a bad idea you mark my words on that one. You see for those who have really been following what has been going on over the last ten years we have noticed of course that this bull run is LONG. Too long.
It is coming to an end and you will see over the next little while as stocks come crashing down to discount prices, and then you can buy!
But going all in and buying now is a bad idea. Just wait it out for a while. Like @John said put your money in T bills or other safe investment and then when the market is looking better to invest, — you go in and make a killing.
I would also like to know what others think about this
At the moment stocks are very temperamental with some of the top stocks like Apple and Facebook way down.
Many top investors are getting out of stocks and putting their money in treasury bonds for now expecting the market to crash in it’s entirety.
If that happens then it will present a very good opportunity to buy in at the bottom of the market and hold those stocks for the next bull run.
Buying stocks now is likely buying very close to the end of the market cycle and therefore you have more to lose than to gain.
You may want to sit out of stocks for a while and watch the market. Preserve your capital and so if there is a big downturn you will be in the right place at the right time to invest and profit from it.