investing $50000 short term

[voltage]

If I was to invest $50000 for less than a year would you park this money in NZ shares?

[RGR367]

No as a year is too short to make good on shares.

[Bobdn]

Yes quite right. Super high probability you'll make money in shares over 20 years. Over 10 years? Pretty good chance. Less than that time frame, it's pretty much a crap shoot.

I try to remember those stats in this crazy bull market.

[Beagle]

I think the above is sensible advice with the caveat that its about risk and reward. If you are prepared to accept that we're late stage bull cycle so we could see considerable variability around short term returns some opportunities could be worth considering provided you have an appetite for some risk. For example over that time frame I think OCA could rerate fairly strongly and have invested an outsized portfolio position, (walking the talk) to back up that opinion.

[percy]

If I was to invest $50000 for less than a year would you park this money in NZ shares?

Depends how well you know the market.
On 29th August I brought MVN at $1.06 cum divie.On Friday they were $1.16 ex div...Over 10% in 3 weeks.
On 6th September I brought OCA at $1.10 .On Friday they were $1.21.....10% in just over 2 weeks.
On Wednesday [26th] TRA are holding their agm at 10.30am.If the tone of the meeting is positive, buying a parcel under $3.00 should be profitable.
HBL looks as though it has started a new up trend.
So always opportunities,if you take care.Always safer buying big divie payers when their chart shows they are in,or have started a new uptrend,or on any earnings upgrade announcement..
Stay away from companies not paying a divie.

[traineeinvestor]

If I definitely needed the money in 12 months I'd go with a term deposit at one of the large banks or possibly a highly rated bond due to mature within your time frame.

Before deciding whether or not to take the risk of investing in shares, I'd want to know the consequences of holding a loss making position a year from now. If it's relatively insignificant, you may be more willing to take the risk than if it will have a material adverse effect on your lifestyle (or your relationship - if any).

[Maverick]

Buy a Ford Ranger with big shinny wheels and drive round town all year..... you will be very cool.

[whatsup]

If I was to invest $50000 for less than a year would you park this money in NZ shares?

Volt, What sort of return do you want 5-10-15%, you must have something in mind ?

[hogie]

A bit left-field but how about investing in TWR?

Sneaky suspicion that the company may be sold within 12 months which will potentially mean a doubling of your investment ...

Or not ...


:P

[Lewylewylewy]

Maybe wait for announcements to come out, then place the cash for less risk. Oca is looking healthier than ever. Sum is proven (but im waiting on the announcement before topping up).

You could buy nzx.wbc. they're easy to trade, just buy near $30, then sell when it goes up, rinse and repeat. If you get stuck with them, the dividend is better than the bank (though note there are no tax credits).

Why just a one year hold? Maybe if you give more info, people might have some out of the box ideas.

[Yoda]

;)Defiantly OCA...

[voltage]

Thanks for the comments. Obviously, if I went to a financial planner the answer would be fixed interest deposits. I thought without being greedy and with an emphasis on good dividend and lower risk shares, I should be able to receive a return closer to 10%. Is a selection of retirement home stock and power companies the way to go. The money is to reduce a mortgage in 1 year but with mortgage interest rates around 4% surely I can do better with shares and could hold longer. The risk for me is quite insignificant.

[traineeinvestor]

Thanks for the comments. Obviously, if I went to a financial planner the answer would be fixed interest deposits. I thought without being greedy and with an emphasis on good dividend and lower risk shares, I should be able to receive a return closer to 10%. Is a selection of retirement home stock and power companies the way to go. The money is to reduce a mortgage in 1 year but with mortgage interest rates around 4% surely I can do better with shares and could hold longer. The risk for me is quite insignificant.

If 12 months is not a hard target and you are prepared to hold for longer if the market moves against you then the case for equities looks better. In terms of yield alone, you can beat 4% (especially with imputation credits thrown in) but you should think about how long you would be prepared to hold if the long running bull market decides to crash. Recoveries can take years.

A slightly out-of-the-box alternative would be to buy a good quality share and write call options with strike prices below or close to current market price. The only problem is that I don't think these are available in NZ so you would have to look to the ASX to do this (which means FX risk).

[Lewylewylewy]

You might consider doing a financial model of what happens if you leave the money in the stock market for 10 years.

The only reasons i can see not to take advantage of that super cheap loan is either lack of confidence in the alternative investment or the cost of the mortgage on your lifestyle.

[JBmurc]

If I was to invest $50000 for less than a year would you park this money in NZ shares?

Depends on your risk profile ...one company I currently hold on the ASX is currently being offered 10c per share by the Largest 60% Holder
with the SP trading at only 9c with a good chance the offer will be lifted to appease remaining blocking stake holders(25% signing legal Deed)

Now its never 100% guaranteed it will play out ...but coming across a company under offer from it Biggest holder which has pumped more than 30c AUD per share into the company over the last many years IMHO would be risk worth taking

Geez I've invested more than 60k AUD of Westpac's money into it at 5% floating rates (paid av 7.8c)

[winner69]

WINX.AU will give you a good return over the next few months and then put it all in the bank until you need it

Estimated return 60%

[Sideshow Bob]

WINX.AU will give you a good return over the next few months and then put it all in the bank until you need it

Estimated return 60%

As sure as a sure thing, but the run has to come to an end sometime. Risk of total loss.....

[winner69]

As sure as a sure thing, but the run has to come to an end sometime. Risk of total loss.....

Voltage comes across as a gambler so minimal risk shouldn’t worry him