Investment, What to choose?

Oldman answered 2 months ago …

You have to ask yourself several questions about the investment:

1. At what level of loss do I bail out? (down 25% or 50 %, as examples)

2. Am I looking for income (dividends or return of capital) or growth of the investment's value?

3. How will this investment perform if the economy remains subdued or subject to further deflation...vs. how will this investment perform if inflation comes back?

4. What expenses (trading fees, or management fees) will be incurred with this investment?

Although there are many online brokers that can start a trading account for you with a minimum deposit of $1000, many will charge a fee for little accounts that may chew up any gains or dividends, in addition to transaction fees to trade.

You could, as an example, purchase about a 100 shares of ATPWF, for about $850-900, that would pay you about $7.50 per month in qualified dividends...and the 15% withheld by the Canadian Govt. would be a tax credit on the 1040 if you file a U.S. Income Tax return. But this stock won't double in a year or even three.

You could speculate and buy a few hundred shares of SVM, a Chinese silver miner...it won't pay any dividends, but it might double in a year, particularly if the perceived value of Silver goes up.

You could also buy a few hundred shares of ROY, a gold royalty company, that gets a commission from a variety of gold mines...its shares will go up with the rise of gold, and the dividend isn't much, about 2%, but it's paid quarterly.

These are some low cost and intermediate risk investments in U.S. traded securities.