Hi guys, its my first post here, I'd had a little read around for the last few minutes and seen some interesting dicussion.

I have stock piled a bit of hard earned cash, and I'm looking too invest it into something that will give me a return. I know shares can be very risky, and with the credit crisis and bail outs going on it seems to be even more of a risk. Anyway, seeing as we have entered a recession... can we perhaps expect a new encomic boom afterwards when markets regain a grip? I had an idea of perhaps investing in Steel, or material that is used to make steel as surely this will hit the roof after recession?

perhaps just a guess though, I was thinking of saving my money into gold in the mean time, as I'm worried that the pound might drop badly and my money come next to useless...but golds already really high right?

Has anyone got any advice for a complete newbie at stock marketing?

Hi BigFill

For anyone new to investing diversification is the key. I think your idea of investing in commodity companies is valid. I generally trade the indices but have started to pick up commodity based business that are now, I believe, cheap.

Many may say that commodities have seen their best for a long time, but I disagree. The vast sums of money being pumped into the system will, to a large extent, be infrastructure spends. This will increase jobs, which is an objective, but it will also fuel the need for raw materials.

Also, with the credit markets freezing up, many smaller exploratory companies and projects will not get funded leading to many going out of business thus lessening the supply of commodities.

Basically now is a great time to be picking stocks for the long term but, for now, stick with companies that make the things we eat, wash ourselves with and those that produce raw materials. Simply think of being the skintest you have ever been, what would you spend your money on? Food, heating, toileteries etc.... everything else wait unti we see better economic numbers.

That is a great post, thank you very much. I can't agree more, at least i know what kind of direction i should aim for when investing... that was the hardest part for me, because you always want to feel safe with who you are investing in too, and as you said investing in the companies that produce and supply the main basic stuff we need are going too be best.

Am i right in thinking that because people are feeling the pinch these kind of companies are going to expand? seeing as a lot of companies are finding themselfs bankrupt or out of customers...

thanks

bigfill.

I would be cautious about thinking these companies will expand. The economy is shrinking so sales will not be as high as previoulsy, however, I believe many of these companies have been dragged down y the wider market and have been oversold.

The best strategy is not invest all at once, use a 'pound cost averaging model' by investing over the next six to eight months, this way if the markets test the lows again you can 'average down' and get a better overall price. You may not get in at the bottom this way, but you should be looking medium to long term anyway. When 'normal' market conditions come back you should be sitting at a nice price level.

I would agree that the best option at the moment is to sit on the cash, problem is that interst rates are getting that low that you will not earn much interest on the cash. I have invested in stocks and shares for years, but now I just hold 1 stock which is Imaginatik (IMTK), the rest I have sitting in the bank, although like I say its not earning me much, and who knows how safe it even is in the bank??

You need to analyse what works for you, as stocks shares and the likes that worked for many years on and off are suddenly so unpredictable.

I think most people are so worried about a recession that they a totally blind to the investing opportunities it presents for the long term. I am going to try and make it easy to understand my logic here and as brief as possible. Now here are some few facts,

(a) This recession or whatever you want to call it will be over in the next couple of years maximum

(b) There are some companies out there that are currently trading at an incredibly low rate, but the financial market cannot afford for them to go bust so they wont.

When this recession is over these big financial institusions or companies will definitely bounce back and they will hit dizzy hights for awhile.

The logic here is still diversification, but buy into bonds and shares or whatever of these companies that are trading very low at the moment and will eventually bounce back after awhile. In the long run, your yield will be very high in some of those investments and moderate in others but i doubt if you will be making a loss in any.

The key here is for you to do proper research and hold a strategically diversified portfolio and a positive yield is as certain as the day.

I just hope you get the idea...lol

Definately represents a few opps over the next few years. Everything is always high risk, and always has been, its just the likes of property investment has been plain sailing up until now.

There is plenty of stuff out there, but individuals need to go and do their own research as alot of it is down to knowledge aswell as time.

If you are seriously seeking investment opportunities, then invest in commodity market, best place where you can earn extra money without any tension.

Hi there, i have recently invested into Fine Wine,the company use are well known and have good trading results.The beauty of the investment is that there are no penalties to exitas YOU own an asset,soi willlook short term but if allis well will hold on longer.

Another bonus is that is TAX FREE so everything i earn i keep. My broker is expecting to see 12-15% in a year from the money i have invested,as he secured first growth wine from Bordeaux. The Asian market are consuming these wines like no tomorrow,so as the market is Supply and Demand and now consumption is ever growing its good times ahead. If you want the details of who i use then i have no problems passing there details on

Oh yes I did hear about the tax free benefit in fine wine, I think this sector will become more successful in the coming years as there is a strong demand for it in the Asia market. Though, I think its still advisable to do your own research too so that when you do decide to get involved you know your do's and don'ts and be sure to approach a broker/adviser from a reputable company/firm.

Have any of you thought of investing in overseas property? I happen to know of a great investment opp right now in a company that is developing an awful lot of sites dotted around the caribbean. And their standards for EVERYTHING are sky high. If you ask me, theyre gonna bomb the other resorts right offthe islands. In Barbados for example, they have promised to deliver a resort with a beach that will literally dwarf the current "top beach" in Barbados. And the cgi's ive seen for one of their resorts in the dominican are damn impressive. Send me a message if anyone wants more info. These guys really treat every single one of their investors like a partner. Well worth it and if you ask me its no risk. The caribbean is on the rise atm.

That sounds promising.

Id be happy to discuss further Mark?