Getting started in investing as a college student. (bond, Etrade, Ameritrade)

[mrgrape]

k i want to start investing as soon as possible.
I want to open a portfolio that is composed of mainly commodities.
what brokerage account should i open? etrade?ameritrade?europac?
also i heard that banks offer this service to customers, if so what banks?

do these brokerage accounts charge you in anyway?
thanks, just want to save myself from this upcomming inflation

[chet everett]

Dude, you really need to look at the yield spread on bonds / Treasury bills to understand that right now NO investors are really concerned with inflation:

Predicting real growth and inflation with the yield spread | Federal Reserve Bank of Kansas City - Economic Review | Find Articles at BNET

SSRN-The Yield Spread as a Symmetric Predictor of Output and Inflation by Gikas Hardouvelis, Dimitrios Malliaropulos

Treasury security - Wikipedia, the free encyclopedia

http://www.econbrowser.com/archives/...tanding_t.html

Commodities are NOT even close to investments that an inexperienced person should get close to, the rapid, violent swings in price can wipe out professionals, even those who think they know what they are doing:
Return On Investment : Common Myths About Commodity Investing
United Airlines had some HUGE lossess on their books as oil prices plummeted and they could not get out of the trades they were using to offset run-ups in fuel...


If you want excitement go the Vegas.

If you want to grow some money you should first SAVE as much as you can so that you learn how hard that is and develop a distaste for having your money burn away.


Right now the credit markets, where bond traders deal in the debt of publicly traded companies, government securities and other investment and speculative grade issues, are in an unprecedented chaotic state. If you can learn who bonds trades make their picks and what they sell this could be an opportunity to rather quickly see not terribly risky decisions pay of many times over.
PIMCO - Corporates Basics

http://www.bhibank.com/wps/icmm/uplo...rGoodValue.pdf

http://research.stlouisfed.org/fred2/series/BAA

Of course there is risk that some of those bonds will be in default, and you could lose your money, but bonds typically move much slowly, and information about their direction is available much more widely.

Not really advising you go that route, just suggesting that commodities are not the right move for some one in your situation.

[mrgrape]

lol its not just inflation man, its the devalue of the dollar in which why i want to start investing.
i am not thinking about anything in domestic stocks or bonds, im looking at FOREIGN stocks and bonds.

[chet everett]

You send commodities.

Foreign stocks are no more immune to problems in the US economy, in fact it could be argued that MANY US stocks would benefit from more strongly /recover more quickly than foreign stocks AND be a more transparent method of benefiting from upticks in the overall global economy.

If instead you want to participate in "currency plays" you ought to know that retail 'little guys' are even MORE likely to get trampled in this arena that with commodities:
Foreign exchange market - Wikipedia, the free encyclopedia

Even those who try to sell ETNs to little guys admit it is ugly way to watch one's money evaporate before your eyes: Smarter Ways to Make Currency Plays

[mrgrape]

Originally Posted by chet everett

You send commodities.

Foreign stocks are no more immune to problems in the US economy, in fact it could be argued that MANY US stocks would benefit from more strongly /recover more quickly than foreign stocks AND be a more transparent method of benefiting from upticks in the overall global economy.

If instead you want to participate in "currency plays" you ought to know that retail 'little guys' are even MORE likely to get trampled in this arena that with commodities:
Foreign exchange market - Wikipedia, the free encyclopedia

Even those who try to sell ETNs to little guys admit it is ugly way to watch one's money evaporate before your eyes: Smarter Ways to Make Currency Plays

k then, what do u think of the Federal Reserve and bailouts?
just seeing ur view on the ecnonomy as compared to mine

[chet everett]

The actions of the US Federal Reserve have been modeled on /echoed by other central banks of Europe and Asia.

This is a global collapse of functional credit markets. All the US mortgages were collateralized and used to create investment instruments that a lot of bright people failed to fully analyze. There are potentially trillions of dollars "out there" that no one really wants to guess "how low will they go".

Right now "cash" or cash-like highly liquid securities are what all classes of investors are demanding -- no one wants to see their assets shrink. Of course at SOME POINT investors will demand that their assets GROW, and when that happens you want to be able to take advantage of growth by putting your SAVED CASH into the growing sectors.

The worst thing you could do now is take excessive risk and be wiped out when growth opportunities become more prevalent...

I am big believer in the value of real estate, and have made a pretty nice return over about four decades of buying, renting out, and selling residential properties. I scaled way back on that since about 2003 and have not owned anything other than my home since 2006.

I do think that real estate still affords people some unique opportunities to increase their worth, but given as how this mess was created in large part by an over expansion of real estate this would NOT be the time for a beginner in college to try and succeed.

The most valuable thing that you can have is KNOWLEDGE, coupled with EXPERIENCE you'll be prepared to face any challenge with wisdom. Save you money and spend your time LEARNING.

[mrgrape]

Originally Posted by chet everett

The actions of the US Federal Reserve have been modeled on /echoed by other central banks of Europe and Asia.

This is a global collapse of functional credit markets. All the US mortgages were collateralized and used to create investment instruments that a lot of bright people failed to fully analyze. There are potentially trillions of dollars "out there" that no one really wants to guess "how low will they go".

Right now "cash" or cash-like highly liquid securities are what all classes of investors are demanding -- no one wants to see their assets shrink. Of course at SOME POINT investors will demand that their assets GROW, and when that happens you want to be able to take advantage of growth by putting your SAVED CASH into the growing sectors.

The worst thing you could do now is take excessive risk and be wiped out when growth opportunities become more prevalent...

I am big believer in the value of real estate, and have made a pretty nice return over about four decades of buying, renting out, and selling residential properties. I scaled way back on that since about 2003 and have not owned anything other than my home since 2006.

I do think that real estate still affords people some unique opportunities to increase their worth, but given as how this mess was created in large part by an over expansion of real estate this would NOT be the time for a beginner in college to try and succeed.

The most valuable thing that you can have is KNOWLEDGE, coupled with EXPERIENCE you'll be prepared to face any challenge with wisdom. Save you money and spend your time LEARNING.

okay i def approve your view. now im going to read your posts more carefully..... but real estate as a college student is not even affordable lol.
but i will take ur advice of knowledge, experience, and to learn instead of just jumping in.
i am a big fan of saving and dont spend as much so i have some money to play with as if i dont start, i will never go anywhere so i was wondering how i can start off.

[J Arp]

Originally Posted by mrgrape

okay i def approve your view. now im going to read your posts more carefully..... but real estate as a college student is not even affordable lol.
but i will take ur advice of knowledge, experience, and to learn instead of just jumping in.
i am a big fan of saving and dont spend as much so i have some money to play with as if i dont start, i will never go anywhere so i was wondering how i can start off.

Sure it is affordable. You just have to WORK for it.

Well, work and live in a "flyover" state I suppose...

[mrgrape]

wouldnt i be able to borrow soon to be worthless dollars at a low fixed rate to buy an asset that I will use and I would retain my cash and allow it the opportunity to grow exponentially in an inflation benefitting investment?

and trust me i know what hard work is. ive been working since i was 16 and going to school full time at that as well.
got 16grand saved up....and going!

[Pilgrim21784]

mrgrape: It's good to hear of a college student that is not in debt. Keep saving, cash is king for the foreseeable future. My opinions on the near/mid-term shakeout aren't worth anything more than anyone else, but cash will give you some great opportunities in the next few years. Avoid debt and keep up the outstanding performance.