Any Investment ideas for 2019?

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Submitted by fredo4 on January 4, 2019 - 5:50pm

I liquidated most of my holdings last year to buy more income property. I’d like to invest my savings again, but am not sure what to do because of the current market downturn. Any suggestions on where to start ? I’d like to add about a thousand dollars a month. Divends would be great, but since my property gives me rent income, it isn’t completely necessary. Any advice is appreciated. Thanks.

Submitted by phaster on January 6, 2019 - 11:20am.

if "affordability" is defined as the typical household looking to spend no more than 30 percent of its income on housing (in the 35 largest metro areas in the U.S.A.) then zillow has an interesting info-graph showing "affordability" vs "interest rates"

NOTE for the info-graph,... the current average 30 year fixed mortgage rate for the U.S. was 4.63 percent

no surprise that metro areas w/ in CA are the least "affordable" so income property seems to be the least risky investment as long as the overall economy is positive and the CA region remains having a favorable public impression BUT given various storm clouds on the horizon think it prudent to have a hedge strategy AND a rainy day cash reserve to ride out an inevitable financial storm

Submitted by flu on January 6, 2019 - 9:37pm.

I am keeping my eyes on a bankruptcy filing for PG&E.

If that happens, I might try to pick up shares afterwards.

Remember what happened to BP when the gulf disaster struck? Where is BP now?

Remember a long time ago when Texaco filed for bankruptcy to escape its liabilities? What happened to Texaco after? Let's review memory lane on why Texaco filed for Chap 11.

https://www.apnews.com/fdc62f40897fc5e2f...

Different company and circumstances, same playbook

Submitted by flu on January 14, 2019 - 6:49am.

looks like PG&R will file for Chapter 11

https://finance.yahoo.com/news/exclusive...

Submitted by Hobie on January 14, 2019 - 7:07am.

I'm in for PG&E too. SDGE had to buy helo,turns off backcountry power during wind storms, paid a bunch of damages, now has new trucks driving on the road. They are making $, same track for PGE.

Submitted by spdrun on January 14, 2019 - 8:57am.

Screw PG&E -- they caved in to NIMBY cowards and are planning to close Diablo Canyon. Nuclear energy = clean energy.

Submitted by flu on January 14, 2019 - 9:50am.

Hobie wrote:
I'm in for PG&E too. SDGE had to buy helo,turns off backcountry power during wind storms, paid a bunch of damages, now has new trucks driving on the road. They are making $, same track for PGE.

too big to fail. This will be a less than $5 stock soon.

Submitted by Hobie on January 14, 2019 - 11:12am.

Remember Exxon Valdez. Customers paid for damages. PGE will bounce back in just a few years. Electricity will cost more due to forthcoming new laws. I'm in./

Submitted by flu on January 14, 2019 - 2:50pm.

privitize profits, publicize losses. Isn't this country great or what!!!!

Submitted by flu on January 14, 2019 - 5:35pm.

I guess it was a good thing that I got out of the Vanguard CA tax exempt municipal bond fund a few years ago that is stacked high with PG&E's bond...

I wonder how that's going to play out.

Submitted by henrysd on January 14, 2019 - 8:08pm.

flu wrote:
I guess it was a good thing that I got out of the Vanguard CA tax exempt municipal bond fund a few years ago that is stacked high with PG&E's bond...

I wonder how that's going to play out.

Out of $415 m Vanguard owns, $413 m is insured, only $2 m subject to loss. Considered it is owned 3 funds with combined assets over 25b, the 2m possible loss is basically negligible. Even within 2 m possible loss, muni recovery rate is still high enough on get decent percentage out of the 2m back.

When Detroit went bankrupt, Vanguard also had large positions, but lost nothing in the end because the positions were insured.

Submitted by flu on January 14, 2019 - 8:10pm.

henrysd wrote:
flu wrote:
I guess it was a good thing that I got out of the Vanguard CA tax exempt municipal bond fund a few years ago that is stacked high with PG&E's bond...

I wonder how that's going to play out.

Out of $415 m Vanguard owns, $413 m is insured, only $2 m subject to loss. Considered it is owned 3 funds with combined assets over 25b, the 2m possible loss is basically negligible. Even within 2 m possible loss, muni recovery rate is still high enough on get decent percentage out of the 2m back.

When Detroit went bankrupt, Vanguard also had large positions, but lost nothing in the end because the positions were insured.

ic.. ok, good to know. I stand corrected.

Submitted by scaredyclassic on January 16, 2019 - 8:47am.

how risky is this?

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