Curious about the bouncing lately...

S&P, Treasuries, and REITs to get started. Use optionable ETFs and when you get your head around those three you can then consider adding other ETFs. For the balance to go up you have to reinvest Dividends, interest, cash distributions and option premiums. You write call options to reduce the risk to you of a bubble. You write puts to reduce bear market risk. Reinvestment accounts for more than 90% of market growth 1929 to now. Shoot for about 6%/qtr but you really do need to reinvest all of your incomes to do that including option premiums you get because you will get bad news from somewhere at least once a quarter. Just grin and bear it. But do get in an investment club you can stomach to make sure you are not doing something stupid from the start.
 
S&P, Treasuries, and REITs to get started. Use optionable ETFs and when you get your head around those three you can then consider adding other ETFs. For the balance to go up you have to reinvest Dividends, interest, cash distributions and option premiums. You write call options to reduce the risk to you of a bubble. You write puts to reduce bear market risk. Reinvestment accounts for more than 90% of market growth 1929 to now. Shoot for about 6%/qtr but you really do need to reinvest all of your incomes to do that including option premiums you get because you will get bad news from somewhere at least once a quarter. Just grin and bear it. But do get in an investment club you can stomach to make sure you are not doing something stupid from the start.
So, those things you mentioned generally always have a positive return? It almost sounds like there is no growth on value like a stock, but rather, it's a set % that you get, the asset never grows in value, and your investment grows by simply taking all of the returns from the investment and putting it right back into the account.

Does that sound accurate?

If that is the case, sounds like more of a sure thing, and you are always making money, and you are not having to lose money when stocks go down. Sounds like the down side is that your rate of return will not be as high as the market can possibly give.

You cite 6% vs mutual funds which can average between 8% and 12% per year.

Is that right or am I misunderstanding?
 
S&P, Treasuries, and REITs to get started. Use optionable ETFs and when you get your head around those three you can then consider adding other ETFs. For the balance to go up you have to reinvest Dividends, interest, cash distributions and option premiums. You write call options to reduce the risk to you of a bubble. You write puts to reduce bear market risk. Reinvestment accounts for more than 90% of market growth 1929 to now. Shoot for about 6%/qtr but you really do need to reinvest all of your incomes to do that including option premiums you get because you will get bad news from somewhere at least once a quarter. Just grin and bear it. But do get in an investment club you can stomach to make sure you are not doing something stupid from the start.
So, those things you mentioned generally always have a positive return? It almost sounds like there is no growth on value like a stock, but rather, it's a set % that you get, the asset never grows in value, and your investment grows by simply taking all of the returns from the investment and putting it right back into the account.

Does that sound accurate?

If that is the case, sounds like more of a sure thing, and you are always making money, and you are not having to lose money when stocks go down. Sounds like the down side is that your rate of return will not be as high as the market can possibly give.

You cite 6% vs mutual funds which can average between 8% and 12% per year.

Is that right or am I misunderstanding?

6%/qtr is 26%/year. If you really want to quietly freak out over safe but insane rates of return google Charles Carlson, he is the go to guy on DIPs (Direct Investment Plans) with discounts to markets on OCPs (Optional Cash Payments.) But Make sure you get started with an investment club in this market. It takes a lot of research to figure out the safety level of a coke bottling company in Malawi v. a Tibetan railroad and other things I had never heard of until I got on his newsletter list. Check your sanity at the door. This is the place where you really hope the barriers in the investment zoo are sturdy. That said the highest rate of return of investment I have ever had involved a natural gas boom in New Zealand.
 

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