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What are you going to invest in this week?

Updated on April 4, 2014

What are you going to invest in this week? Bonds, gold, stocks, USA, Europe, Japan, Cash ...?

With economic worries all over the world you'd be mad to invest in anything at the moment, wouldn't you? But there is always a bull-market in something somewhere in the world, but where is it?


Is it best to play safe, keep your money in the form of cash or just pay down as much of the mortgage as possible or take a gamble while prices are low. Will they go lower?


Please tell me what you think either in the TwitterStorm or Comments sections below or vote for best investment or economy below.

Government Bonds (or Gilts)


Government Bonds are a safe haven investment. AAA rated countries such as USA and the UK will always pay back your money and the annual "coupon" (interest) so what can go wrong? Some major economies (including UK and US) are perceived to be not quite as safe as they were and while no immediate downgrade has occurred there is a reasonable chance of it happening soon. This will probably not cause a default, but will result in a reduction in value. Also if inflation returns bonds prices will fall as interest rates rise to combat it and the real value will be eroded.

Blue Chip (Large Company) Stocks and shares are cheap, but will they get cheaper?


There are historically good dividend yields from big household names, but will they pay their promised dividends? If not, both their value and the income stream could be impacted. Pay careful attention to the safety of their dividends and/or buy a selection of shares in unrelated industries to reduce risk, or buy a collective investment such as an Exchange Traded Fund (ETF) or an Investment Trust

Corporate Bonds pay a huge yield, but will they default?


Historically high yields, compared to bank base-rates after a Hedge Fund sell-off (bonds were sold by many companies in need of cash) if markets return to normal the yield spread between government and corporate bonds should shrink causing a significant gain in value. This has already started to happen (May 2009) but could go a lot further. As with government bonds however, if inflation returns, bond prices will fall as interest rates rise to combat it and the real value will be eroded.

Gold is a great insurance in times of financial trouble, but doesn't pay any income. (See related article)

Which economy: USA, Europe, U.K. Japan...?

Or just leave you money in cash (But Dollars, Sterling, Euro or Yen?)

Zero Dividend Preference Shares look very good.


Zeros (ZDPs) behave much like Corporate Bonds except the profit is returned in the form of capital gains at the end of their lives, so these too have looked very attractive (especially for those hoping to avoid income tax) There are, however, just a few left with good gross redemption yields and suitable time to maturity to make a purchase worthwhile (see the link above for details of how to value them)

Investment Trusts look very cheap.


Investment Trusts often sell at a discount to their net assets, especially at times of economic stress, so there are some bargains around (if you think markets will recover soon)

Spread-betting can make you money in any market (or lose you money)

A Balanced Portfolio i.e. all of the above might be a good bet?

Buying some Gold could also be a good insurance against your currency being devalued?

Or how about hedging your portfolio with derivatives, Options, Warrants or Futures


What do you think is the best bet at the moment?


Do you believe in Technical Analysis (Charting) for predicting price movements?


Please add suggestions and vote in the Voting module or see the latest suggestions and comments in the TwitterStorm blog below, vote on the best investment sectors or markets and see the related articles:

Disclaimer: Information in this and other linked articles is unregulated and for general information only and is not intended to be relied upon in making specific investment decisions. Appropriate independent advice should be obtained before making any such decision.

Vote for best investments

What Should We Invest In Now?

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Investment Books

A few useful investment books

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P.S. You can start your own debate, too.

Start and track a real-time debate on Twitter. Go Twitter go.

Please tell me what you think

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    • profile image

      mstcourtjester 4 years ago

      My kind of lens, had fun, good work!

    • profile image

      songsgames 5 years ago

      songs Games

      Season Games

      store Games

    • profile image

      resellrightsfest 6 years ago

      I want to try mutual funds because they said it's not so risky. investing for dummies and beginner'sguide

    • Andy-Po profile image
      Author

      Andy 6 years ago from London, England

      Investor's Chronicle recommended, this week, buying into Private Equity Investment Trusts, especially Graphite Enterprise (GPE) which is trading at a large discount of more than 30% and seems relatively low risk due to high levels of cash. It certainly sounds interesting although probably still quite risky. That discount looks very tempting though.

    • Andy-Po profile image
      Author

      Andy 6 years ago from London, England

      HMV shares seem to have increased in value quite a lot today. They are trying to resolve banking covenant problems this week by coming up with some sort of rescue package e.g. selling off the Waterstone's bookshop chain and/or a rights issue, but there has also been speculation about a takeover of HMV by Alexander Mamut, a Russian oligarch who has hired Credit Suisse as an adviser. Alexander Mamut already owns a 6% stake in HMV.

    • profile image

      anonymous 6 years ago

      very nice lens, thanks a lot...

      Go Trends

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      anonymous 6 years ago

      China Wholesale

    • profile image

      anonymous 7 years ago

      Why invest "this week"? What should change? Nothing if it's right. See here http://affluability.com/intro/at-a-glance/ - Can we join forces?

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      HMV shares looked like a very good gamble yesterday. HMV is a value stock, with a huge yield of 12% or so, but with some possible trouble ahead, given the nature of their business, high street music and book sales, but of course that isn't all they do. They are also one of the few survivors in this marketplace. The high yield and low PE of less than 5, good dividend cover (1.5) and recent price drops makes the share-price look very reasonable.

      I bought at 52.74p yesterday, but the price is already rising after today's annual results. The HMV share price is above 61p as I write this.

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      Is gold looking expensive at the moment? Time to buy Silver instead or wait for a correction first?

      I always feel nervous about any asset class that is in the news all of the time and Gold is of course the asset that everyone knows will protect them from any more financial disasters, but when anything is this popular it will also tend to become over valued before it comes crashing down again. Unfortunately it is very difficult to value gold. What do you compare it against?

      The only other metal used as money is gold, although it also has industrial applications, unlike gold. Currently silver is historically fairly cheap compared to gold - left behind in the rush to buy gold. If you like the story for gold, silver looks perhaps even better, although if you think there is going to be a gold correction silver could suffer a bit too.

      Another alternative is to invest in Gold or Silver miners

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      Alliance Trust (ATST) is a large UK investment trust and trades at a 19% discount and holds blue chip shares. Discount must narrow soon? Share holders are calling for some sort of discount management to reduce the discount, but so far it isn't working. Perhaps one to hold for the long term and hope for a discount reduction.

      ATST hold some of the usual suspects - large Blue Chip "value" shares that pay a dividend, although the total dividend is just 2.6% at the moment.

      Largest holdings are: BHP BILLITON, RIO TINTO, HSBC, NEW YORK COMMUNITY BANCORP INC, BP, INTEROIL CO INC, ROYAL DUTCH SHELL, PHILIP MORRIS INTERNATIONAL INC, GLAXOSMITHKLINE, BRITISH AMERICAN TOBACCO

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      After yesterday's UK Emergency Budget, in which the capital gains tax did not go up as much as anticipated, Zero DIvidend Preference shares still look almost as attractive as before (and for lower rate tax payers possibly more attractive than ever)

      Here are two more short-maturity dated Zero Dividend Preference shares (ZDPs) to protect you from market volatility over the next few months:

      Equity Partnership ZDP (zero dividend pref share) EQPC pays 9.4% for the next 13 months. Looks good? Almost too good, but I can't see any catch with this one: Hurdle rate of -53% and a share cover of 2.4.

      Invesco Perpetual Recovery Trust 2011 plc pays an incredible 12.7% over 15 months although at a higher risk (cover of just 1.05 and hurdle of -3%)

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      Edinburgh New Income Zeros (ENIZ) will pay 5% return in less than a year. Looks like a good safe investment. negative hurdle rate of about -30% and a good cover of about 1.4, so, unless the next year is really bad for stock markets, it should pay out current price plus 6% (nearer 5% by the time stamp duty has been paid on the purchase) which beats any UK bank account over the same period.

    • profile image

      knowledgeseek 7 years ago

      Great Lense.Thanks!

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      Anthony Bolton of Fidelity, (The UK equivalent of Warren Buffett with an average return of about 19% from his Special Situations fund and Special Values investment trust which he managed during his long career) has returned from "retirement" from active fund management to run a new China fund for Fidelity. I wonder if the returns will be as impressive.

    • Andy-Po profile image
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      Andy 8 years ago from London, England

      Gold has just gone above $1,000 an ounce this morning. In fact it's about $1,007 at the moment, which looks a bit expensive. There are various analysts etc. who are predicting $1,200 or even $2,000, but equally some are predicting a drop back from here before it goes up again. So please be careful and don't put all of you eggs in one basket. Gold is an excellent insurance against dollar weakness, but does not pay a dividend. I have less than 10% of my portfolio in gold, silver and gold miners, at the moment, as insurance and I shall sell some if it goes much higher and buy back in if it drops back. Good luck.

      [in reply to ElizabethJeanAllen]

    • ElizabethJeanAl profile image

      ElizabethJeanAl 8 years ago

      My husband and I are looking into investing in gold. With the economy the way it is, it looks to be the best bet.

      Great lens

      Lizzy

    • Andy-Po profile image
      Author

      Andy 8 years ago from London, England

      Congratulations and Good Luck. I did the same 18 months ago after 15 years and I'm so glad that I did. Now you will have even more time to Squidoo etc.

      [in reply to JaguarJulie]

    • profile image

      julieannbrady 8 years ago

      Well Andy, I didn't think that I would do this, but push comes to shove you know. After more than 16 years with a high-profile bank, I told 'em yesterday, "See ya!"

    • Andy-Po profile image
      Author

      Andy 8 years ago from London, England

      More information of Zeros: JZ Capital Partners are now offering to roll-over their expiring Zeros into a new offering @ 8% GRY for 7 years. The Ordinary shares are short of cash, so new shares are being offered to existing holders (similar to a rights issue) 7 shares for every 3 held. There are new Zero Dividend Preference Shares being issued by Ecofin @ 7% GRY for 7 years. So it looks like there is life in Split Capital Investment trusts. The rates are pretty good too, compared to government bonds. See this article [in reply to Bob]

    • SandyMertens profile image

      Sandy Mertens 8 years ago from Frozen Tundra

      Nice lens. I wish I had the money to invest. Now is the time.

    • Andy-Po profile image
      Author

      Andy 8 years ago from London, England

      Good suggestions. There's a bit of life left in zeros (ZDPs) Edinburgh New Income yielding about 6% until mid 2011, but some risk; Premier Energy and Water and Premier Renewable Energy at 5% and 4% return until the end of 2010 both looking very safe; Jupiter Second Enhanced yielding over 20% for the next 5 months, but not anywhere near as safe... But don't put all your eggs in one basket.

      [in reply to Bob]

    • profile image

      anonymous 8 years ago

      I couldn't add a comment above - probably have to be logged in, but corporate bonds still look good at the moment, although keep an eye on inflation. It will probably come back suddenly causing interest rates to rocket. Other than that, keep some gold and/or silver just in case (not too much though as it doesn't do anything apart from look pretty) Gold miners might be good? I would avoid equities for a while though. I like the ZDP suggestion, but I suspect that ship has sailed apart from, perhaps, Edinburgh (EDNZ I think) Index linker Gilts may prove a good insurance policy too?

    • TonyPayne profile image

      Tony Payne 8 years ago from Southampton, UK

      Very nice lens, 5*****. I just wish I had some money to invest right now, when the market goes up people could make millions.

    • dahlia369 profile image

      dahlia369 8 years ago

      I wish I knew an adviser like you a long time ago...

    • JacquelineM LM profile image

      JacquelineM LM 8 years ago

      I agree - If only I had some spare money.... Frankly I hope to invest in groceries this week. LOL Great piece though! 5*'s

    • profile image

      topstuff 8 years ago

      great lens Andy, yeah it's funny isn't it, now is when most of us don't have spare money, but now is probably the best time to get in on some great investment opportunities. 5 Stars :)