What's in the Works?

What's in the Works?

You may be wondering what I am currently researching for investments so here is a taste of what's in the the works.

China

The most exciting area for investment that I'm researching is China. Last year I made over a 60% gain investing in Hang Seng and Shanghi market ETFs! This was after being down over 20% shortly after making the initial investment! How is that for market volitility and amazing growth potential? Being a prudent trader, profits were taken and I currently don't own any Asia specific stocks or ETFs. I am, however, now looking at individual stocks in Asia and especially investigating converting my "falling" U.S. dollars into Chinese rinmenbi and Hong Kong Dollar denominated assets which have no where to go but up. I heard an interesting analogy recently that put this opportunity into perspective; China now in 2008 is much like the United States of 1908, poised for a century of astonishing growth. Stay tuned for where and how I will be investing in China.

Property

Right now is a great opportunity to purchase property at significant discounts compared to just a year or two ago. The whole mortgage meltdown has caused mass panic by everyone, even those who are in areas that should stand the test of time. Interest rates are low and even the conforming limit has been raised making purchases in the bay area possible at low interest rates. I am currently searching daily for short sale and foreclosure opportunities in San Francisco and have found some properties that are even cash flow positive in some cases due to the discounts which is unheard of in the city by the bay. Stay tuned for more on these "fire sale" opportunities.

Strategy Lab Update

Okay, it has been a while since my last post so here is the latest update.
The strategy lab contest is too time consuming to use and not a good format for anyone to follow my trades and blogs in one spot. First off there are three different sites to visit, the strategy lab open site, the marketocracy site to manage portfolio, and a site to enter blogs for the contest. Then there isn't any easy way, that I can find, to view all of my information in one place. I have to log on Marketocracy to view my portfolio and log on to strategy lab to view blogs. The link I posted originally is supposed to be my home page for the contest to show my blogs and portfolio but it doesn't show anything!

I have to give this contest format a big thumbs down!

Strategy Lab Open Day 1

Well today I found out how little I know about using the Marketocracy system. I woke up early to try and make my initial buys before work and it seemed to take ages for each page to download, maybe due to volume, so I didn't have time to fully read about trading on the system. As you will see below not all of my trades went off as planned, I wrote the notes this morning before the market opened. This weekend will provide some time to look at more opportunities to invest and plan buys for Monday.

Buy Citi Bang

Although a big move upwards has already taken place since hitting $24 a share less than a month ago. Common sense says when the Fed cuts rates banks prosper. Also remember that Citibank has taken some of the largest write downs for bad debt out of all the financial institutions so the worst may be behind Citi. And who's to say some of that bad debt won't be resurrected by all of the emergency action being taken in the economy?

Why Citibank?

On top of all of the reasons other banks have for increasing in value Citibank has an interesting break up possibility looming that would unlock even more value for the shareholders.Insider purchase by Manuel Mora at $27 of five million dollars also indicates strong belief that this stock is going higher!
I placed an order to buy at the current price listed but the purchase didn't go through. New order will be placed for "market order" on monday, might pay too much but I want to be sure the buy goes through.

Buy Googlicious

Google is on sale after narrowly missing so called expert analysts estimates. It is important to note that Google was still up substantially in profit and income. Considering the poor economic conditions everyone has been facing I guess this answers the question of how they will do in a bad economy; Better than everyone else but not as good as so called experts would like. This is a great opportunity to buy a great company. Common sense says that if you can buy the best on sale it's time to buy and I'm going to do just that.

Why is it on Sale?

Let's look at why they missed. They mentioned spending almost 700 million in capitol expenditures in the fourth quarter alone on data centers, servers, and other equipment. If anyone is following Google as a company they would know that they are currently investing heavily in the future so this isn't a bad expenditure by any means.

What Makes Sense?

They are building these giant, nuclear power plant looking, "data centers" in key locations that are paving the way to future worldwide domination of internet search, online software, and internet computing as a whole. Google also has a moat around itself, as Buffett would say, as most people use the word Google when referring to searching for anything on the internet. Common sense says we are witnessing the changing of the guard right before our eyes from Microsoft domination to Google domination and we should partake in the festivities by buying shares of GOOG.

Update: Mr. Softy fires back at Google with a bid to buy Yahoo! This gave us an even better price as the day went on to buy more GOOG.

Buy Mickey D's

This is another great company that has taken a beating in this down market and should be bought. MCD has dropped ten points over the past month since hitting its 52 week high back in December. Although MCD has already had a 5% move up in the past few days it will continue to draw in investors because of its attractive price. Common sense says when you can get a Big Mac on the dollar menu it's time to eat!

Buy SLV

Silver has been under the radar, so to speak, as the record prices in Gold and Platinum have taken all of the headlines. Silver has "quietly" gained over 15% during this period to its current level of $16.90. Does anyone know where silver was at the last time gold hit its old record of $850 in the 1980's? I do, silver was over $49 per ounce at the time! Right now gold is at an even higher level and silver is less than half of its previous high. My bullion dealer has a hard time keeping silver in stock and is convinced that silver will soon see $20+ per ounce. I have to agree with him and from its current level that would be an almost 20% gain. Common Sense says the Fed will continue to sacrifice the dollar to try and save the housing market which will result in higher precious metal prices.

Buy GLD

I will be using GLD as my "money market account" and you can see why here

Disclosure: I am currently buying, selling, and own all of the stocks mentioned above.

Easy Money Management’s editorial goal is to provide a forum for personal finance and investment ideas. My blogs and other features should not be construed as investment advice. An investor's best course of action must be based on individual circumstances.