Buzzed wrote:
tohisaid wrote:Good try, junior.
Thanks. I followed Kent Harvey's advice and invested heavily in coal. I'm up 31% since February.
Now that commodities are crashing and individual stocks are bad, I'll sell off and move my funds into a bond fund.
1) Stocks in general are not bad. It's just bad (risky) to buy individual stocks.
2) Commodities are for people who like to deal in the short term and only when stocks are not doing well. Personally I think they are way too risky as you don't know for sure when stocks are at a good price or not and what the next day will bring.
3) Why buy into a bond fund? Are you old and retired or really close to retirement? If you are more than 5 years away from retirement you shouldn't have more than about 15% in bonds -- more if within 5 years of retirement. Even after retirement, 30-40% bonds is about the most I would ever do. Some advisers suggest NEVER buying bonds as the return is too low -- I'm more conservative than that and will eventually have about 30% bonds when I retire.
4) Stock-laden mutual funds are the way to go brother. Go with Warren Buffet's advice and buy index funds OR split them up across 4 different types of funds like this - aggressive growth, growth, growth and income, and international.