nin137

Nick's Journal
2003-05-16 23:56:08 (UTC)

Sweet Dreams are made of THIS

money. you know it i know it we all know it. no commas.
i'll tell you how to make money. i'm a finance major.
trust me.
buy 20 stocks. price/earnings ratio between 5-15. large
market capitalization. dividend yield of atleast 1%.
portfolio management. 60% stocks. meaning your 20 stocks
comprise 60% of your portfolio. 40% in bonds, cds.
let me elaborate.
DON'T BUY TREASURY BONDS. they yield 3.25% that's sick.
inflation is low i know (we're worried about deflation
which is an unauthenticated media hyped idiotic
presumption). if you really look at the ppi prices fell
by .9% excluding the auto industry and various other
industries that have no profound impact on your purchases.
you'll be kicking your own ass if you buy treasury bonds
now. don't buy corporate bonds unless they are
underpriced.......yes i mean bare high risk. buy something
like lucent (a horribly risky bond), but the bond market is
horribly overpriced. and risk is the only way to profit.
if you're a pansy buy municipals. they're tax free and not
astronomically priced.
cds are great if you have 2 vaginas and don't mind waiting
for your money. 4.20% (no i didn't make that up) on a
fixed rate income is great considering an inflation rate as
high as 2.8% (the 2001 average).
so there you have it. the most of you won't know what the
hell these terms are. i don't blame you i wish i didn't.
maybe it works maybe it doesn't. i can think of much more
to say but i'm just too tired. hopefully it helps
somebody.