Why three years? Are you going to need the money in three years? If that's the case, I wouldn't go looking for the best returns, because that equates to higher volatility and if the market happens to correct right when you need the money, you could lose a lot. Or not. That's the market for you.
If you NEED the money to be there in three years, then I'd invest in something nice and boring. Put it in a bond fund or something, but don't go running to find the next big thing or you could lose it all.
Why three years? Are you going to need the money in three years? If that's the case, I wouldn't go looking for the best returns, because that equates to higher volatility and if the market happens to correct right when you need the money, you could lose a lot. Or not. That's the market for you.
If you NEED the money to be there in three years, then I'd invest in something nice and boring. Put it in a bond fund or something, but don't go running to find the next big thing or you could lose it all.
Nasdaq is woke. You should invest all your money in Trump Coin instead.
Want more risk than money market getting 3.5 to 4.5%, more risk than VOO or QQQ. I'M thinking of putting at of it on AMD or GOOG
This is a dumb way to invest. You should also disregard any simple recommendation that someone is willing to provide without the additional context required to make an honest high quality recommendation.
100% depends on your goal, my a premium income fund like JEPI offers nice 8% yield (~6,000/year) and a little upside, with a little less downside risk.
Why three years? Do you need the money for some specific purpose at that time (down payment, wedding, starting to draw down in retirement, etc.). Conventional wisdom has you avoiding any investment with significant volatility (variation in price over time). Even relatively "safe" stocks can drop 50% in a year. It would really suck if you were left with $40,000 when you needed to take out the money. This becomes less of a problem when you've got a long time horizon.
Research also consistently shows that retail investors (you and I) underperform markets on average. Instead of individual stock picking, you are probably better of picking a low-cost broad market ETF or mutual fund.
Finally, even retail investors buying index funds seem to perform worse than the index they are tracking. We can't help but tinker and inevitably buy high and sell low.
TLDR: Do you need this money in three years? Stick with fixed income. If not, buy a broad market index fund (I prefer a global market fund, but many people buy SPY or a US Total-Market fund). Buy into it regularly and don't sell until you actually need the funds way down the line.
I wouldn't put any accumulated wealth in anything that has to do with the dollar/fiat anymore. The dollar is literally being inflated away before our eyes. BTC has an average annual return of 50%. Put it in, don't watch the volatility and in 3 years you'll be much more wealthy.
Prestige Worldwide, the first word (first word) in entertainment, management, financial portfolios, insurance, computers, black leather gloves, research and development, security, etc.
Wrong question. Not best stock, it's best stocks. No one knows the best stock, and I mean no one.
Best to narrow the search to a handful you feel are likely to rise by your prefered target and fit your risk tolerance, and invest in those in proportionate amounts with how strongly you feel about each.
Also, have an exit strategy thought out, and one that includes what you will do if one or more starts dropping, and by how much.
And I would only do this after you have cash set aside, emer. funds, and money being set regularly toward retirement.
If people knew that a stock would be worth X dollars three years from now then they would bid up the price of the stock to nearly X dollars today. And if you or anyone else on here thinks that they know something about a company that nobody else does which allows them to know what will happen with a stock while nobody else does then you are kidding yourself.
If getting a return of 200% or -90% (without knowing which it will be) is more appealing to you than getting a return of20% or -10% (again without knowing) then buy stock in any random small company. If it is the other way around then buy shares in an index fund.
I like what I’ve gotten from PLTR and NVDA. That said … if I had followed through on buying nearly all-in when I said I should buy (not crazy early, but in late 2023?) my cost average would’ve been 1/3 what it was. If I’d done that and held till today (still hold all my NVDA, btw), … would be nearly 2.5-3 million ahead of where I am now. Would have been totally set. Too many “ifs” to feel really bad about, but I do kick myself, because I felt pretty strongly about it then (and each time I wound up buying), but such is life. Also I don’t feel all that bad about when I sold PLTR, because it had signs of being such a bubble, and I was up tons and able to take long-term gains. Besides, as more news came out I haven’t been thrilled with what the company is doing. I also would have bought more NVDA on the dip this spring, but I thought it was going lower and was reluctant to pull $ from SQQQ at that point. Thought I had at least two more months on that. I was wrong. Making money is better than losing money, but I can’t claim to be tons smarter than the market.
Wrong question. Not best stock, it's best stocks. No one knows the best stock, and I mean no one.
Best to narrow the search to a handful you feel are likely to rise by your prefered target and fit your risk tolerance, and invest in those in proportionate amounts with how strongly you feel about each.
Also, have an exit strategy thought out, and one that includes what you will do if one or more starts dropping, and by how much.
And I would only do this after you have cash set aside, emer. funds, and money being set regularly toward retirement.
I upvoted this, it's good.
One thing missing here, at least not explicitly incorporated, is the covariance across a set of investments. For instance if you pick six bitcoin-like stocks you get very little reduction in risk compared to just picking one because the returns are highly correlated.
One element that generally decreases risk in a portfolio is to be diversified across currencies or countries. But you get some diversification with big stocks with a lot of international presence, in part because 'local' earnings flow into the parent based on the variety of exchange rates.
The QQQ has done fantastically well since 2001. But it is Big Tech heavy. All the titans eventually fall. Going forward, better returns will be found in smaller upstarts.
Coinbase (COIN) is up quite a bit recently, but long term it is a good crypto play because it is an exchange for all crypto, not just bitcoin.
SE Asia funds are risky, but bigger longterm upside than US or Europe or China.
Of course your investment decisions and risk tolerance should be made on whether $80k is a lot of money to you.
Wrong question. Not best stock, it's best stocks. No one knows the best stock, and I mean no one.
Best to narrow the search to a handful you feel are likely to rise by your prefered target and fit your risk tolerance, and invest in those in proportionate amounts with how strongly you feel about each.
Also, have an exit strategy thought out, and one that includes what you will do if one or more starts dropping, and by how much.
And I would only do this after you have cash set aside, emer. funds, and money being set regularly toward retirement.
I upvoted this, it's good.
One thing missing here, at least not explicitly incorporated, is the covariance across a set of investments. For instance if you pick six bitcoin-like stocks you get very little reduction in risk compared to just picking one because the returns are highly correlated.
One element that generally decreases risk in a portfolio is to be diversified across currencies or countries. But you get some diversification with big stocks with a lot of international presence, in part because 'local' earnings flow into the parent based on the variety of exchange rates.
Diversification across varying sectors is important as well.