Ten thousand dollars. It is a significant amount of money. It represents a couple of months worth of bring-home wages for a middle-class family.
We don’t want to trifle with that. On the other hand, ten grand can’t buy a new car, nor is it a down payment on a house. It’s an in-between sum. However, $10,000 has potential.
Invested wisely it can buy a Honda Civic Si, or it can become a down payment on that home you saw for sale.
We sought out the advice of some sharp financial minds for advice on what to do with that amount of money. We asked each of them one simple question. “What advice would you give to your brother if he had $10,000 to spend or invest?”
Not surprisingly, the sharp financial minds did not suggest a week in Vegas and seven sleepless nights spent shooting craps. They had investment strategies in mind, with a weather eye on the future of the American economy.
We were surprised to find that there wasn’t a great deal of disagreement between them. Surprised, yes. Also, pleased. Their agreement, even though they weren’t in the same place at the same time, gave us confidence in sharing their thoughts. Here are their ideas.
1. Buy stocks, but do so warily.
The overheated market still has some juice in it, but we’re closer to the end of the bull market than the beginning. One advisor recommends reducing the percentage of tech stocks in your portfolio, replacing them with a combination of cash and international investments. He recommended a modicum of caution going forward. That turned out to be advice that would soon feel like a theme.
2. Piggybacking on the ideas above, another investor says, “Look east!”
Asia, in particular, caught his eye beginning in June of this year. Of course, the fluctuating trade situation between the U.S. and everyone else will continue to add drama. That’s where your caution should flare up when making investment decisions.
3. Black gold, Texas tea.
The oil market has its detractors, but one of our financial experts says to watch the Permian Basin in west Texas (pictured to the right). They are pumping more oil than can be transported, due to the shale reserves that are producing like gangbusters! Next year the bottleneck will resolve itself, and oil stock prices will rise. Sure, such stock can be volatile, but our expert says an investment now should return a nice profit in the summer of ’19.
4. Finally, one financial advisor advised everyone to take a fresh look at their risk tolerance.
If an investor is feeling gutsy, some low-cost stocks are attractive. However, if you opened your portfolio when you were 35 and your next birthday is your 65th, such a strategy isn’t advisable. In other words, let the candles on your birthday cake guide your decisions for the next few years. This boom is coming to an end, and the next one won’t start for another eight years or so.
That was the gathered wisdom of about 700 combined I.Q. points coming to you for free. We’ll check back with them again. Watch this space for their advice.
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