Too much Cash on Hand!

by TruthSeeker Sun Aug 10, 2014 9:15 pm

Too much cash on hand to my liking, don't feel any financially wiser with this cash earning nothing, not even keeping up with inflation.....

TIA,
TS.

by rawemotions Sun Aug 10, 2014 9:24 pm

TruthSeeker wrote:Too much cash on hand to my liking, don't feel any financially wiser with this cash earning nothing, not even keeping up with inflation.....

TIA,
TS.

It is not a direct response to your question which I think should under finance.

But look at the other side from a philosophical standpoint!
I am sure there are thousand folks who would love to be your place.

Now specifically to your answer, two years back FB was at 17$ 2015 options at 40$ was going at 50 cents to a dollar. If somebody who did not have immediate need for that cash and could afford to risk it, had invested 100 contracts at 50 cents each, costing 5110$ approx, he/she would have probably have got an astounding return of $200000+ for that 5000$.

So if I were you , the market would crash sometime around in next two years, the bear market has to take over, so I would buy long term 2016/2015 put options for shares that are valued crazy today (there are experts like Propa and harharmahadev who can tell you what those shares are) OR GLD options that are low value.

by TruthSeeker Sun Aug 10, 2014 9:46 pm

Not in Options RE. Only play with cash, no margin either.

2013 was like a bomb. Everything climbed like crazy.

Market going up, or down so fast - kinda freezes U, and leaves U with cash that U don't know what to do?

Even Real Estate climbed to a point breaking all records in history in Denver market.

How can you invest anywhere in such a market - Real Estate, Stocks, or a bank with 0.001% Interest rate?

Its all a scandal.

by rawemotions Sun Aug 10, 2014 9:53 pm

TruthSeeker wrote:Not in Options RE. Only play with cash, no margin either.

2013 was like a bomb. Everything climbed like crazy.

Market going up, or down so fast - kinda freezes U, and leaves U with cash that U don't know what to do?

Even Real Estate climbed to a point breaking all records in history in Denver market.

How can you invest anywhere in such a market - Real Estate, Stocks, or a bank with 0.001% Interest rate?

Its all a scandal.

You were lamenting about cash at hand, that I presume you do not immediately need and cannot invest due to lack of returns. We cannot change that, unless off course you can crystal ball the USDINR exchange rate and invest in India for a handsome 9% (pre tax return).

Options (notwithstanding the time value degradation, somewhat mitigated by spreads), of the type I am talking about , are basically full risk. But investing a small value can get you astounding returns, if you can invest and forget about that money for a year or two.

by TruthSeeker Sun Aug 10, 2014 9:57 pm

Umm. No Options, and No India.

by rawemotions Sun Aug 10, 2014 10:17 pm

TruthSeeker wrote:Umm. No Options, and No India.

Ok! Just to clarify, I meant options only in small quantities and only if you do not care if you lose it.

On India, I thought you have invested in INXX, I suppose that still continues right?
Why not in India NRE FD's. Returns are handsome.
Is it due to exchange rate volatility or lack of FDIC insurance ?

by TruthSeeker Tue Aug 19, 2014 11:09 pm

Hi RE:

Am a US citizen, dont even know how will I ever get the money back on all those rentals I have in India. Dont want to leave all this headache for my US born kids. They can hardly handle Indian investments in real estate.

So, India is OUT, if not in NASDAQ or DOW listed companies/ETFs - no FDs or RE. Too complicated with the tax rules of India and US.

Market will crash. Will, Will, Will - Aint happening for last 5 years. So, the cash piles on, and existing investments keep on rising.

For someone who has seen 2000, and 2008 - this is confusingly...bad...or good....

:-)

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