OT: 401k rollover - what to buy...

[learlove]

Hello Money Guys,

I have 21.5K from a rollover that I need to redistribute. I'd like to spread it out over 4 or 5 funds/stocks ect. My existing 401K is spread out over mid and large cap funds in Fidelity.

I'm 36 and would like to retire at 65 (who the heck knows what it will be in 29 years)

Any recs?

[Louis]

Pull it out of the 401k, take it to Vegas, and put it all on 00 for one spin of the roulette wheel. If you win, you're all set. If you loose, you didn't really need the $$ anyway.

[learlove]

Pull it out of the 401k, take it to Vegas, and put it all on 00 for one spin of the roulette wheel. If you win, you're all set. If you loose, you didn't really need the $$ anyway.

funny that is what the guy I'm flying with this month told me to do. I think he said "18 black".

[dekindy]

Open a Scottrade Rollover IRA account and invest in Blackrock Global Allocation R (MRLOX).

[WickedWheels]

Call me crazy, but I put 100% into a U.S. Property account through Principal and got 16% this year. This is after a significant drop the year before, but still...

My thinking was that I'm not a type of person that will shuffle things around and that long term a real estate account should have the most significant growth.

BTW, I'm 32 y.o., so I understand what you're thinking.

[C5 Snowboarder]

Fidelity's fund FLPSX and FNARX and FCNTX have been very good to me.. and I think they will continue to do so.

[rw229]

Since you have a 401k with them, why not open a rollover IRA with Fidelity? I've found them to be pretty helpful running through their calculators to build a portfolio based on age, risk, retirement, etc.

[1centaur]

As an investment professional, I think the easy value has been long-past squeezed out of all the markets. This means that near-term sector-based calls are relatively unlikely to be big outperformers: asset class return differentials have narrowed a lot since 2009. This alone (and there are others) is a good reason to avoid ETFs, especially passive ones, assuming some form of outperformance is the goal. ETFs may or may not be low cost "exposure" to sectors, but the lack of design in passive ETFs means that you're left bobbing on the market tide so you'd better like the market if you want something special from performance.

That leaves your investment selection skills or somebody else's. Most money managers are generally beta providers - their results also bob up and down with their markets. It's hard to pick winners in a losing market and vice versa. Those Fidelity funds mentioned are good funds, did a little better than the market over the last 12 months and I think are good ideas conceptually, though Low Priced Stock is awfully large which somewhat undermines its ability, perhaps, to pick stocks rather than bob on the tide of risk-on that is implied with low priced stocks. Oracle is its third largest holding, a high priced stock with a huge market cap.

If you don't want to pick stocks (and at the size of funds we're talking about, I'd be inclined not to unless you get very high insight on a particular story), and you understand that what counts is performance over the next decade or two, not the next year or two, then you have to think about big themes. The decline of the American story and our relative position in the world is the biggest long-term theme to consider. China, Brazil and related economic beneficiaries deserve exposure given what you already own, although emerging markets have run up a lot as well and may have major setbacks several times in coming decades.

FLATX and MCHFX are worth looking at for market exposure and typically some extra picking ability as well (full disclosure: I own both). MAPIX has better recent performance and you may like the description better.

[Smiley]

Yeah I am with Centaur and have spread the wealth to Developing, Euro and international markets. Most US companies are getting their profits overseas now. Good luck with what u do.

[Climb01742]

As an investment professional, I think the easy value has been long-past squeezed out of all the markets. This means that near-term sector-based calls are relatively unlikely to be big outperformers: asset class return differentials have narrowed a lot since 2009. This alone (and there are others) is a good reason to avoid ETFs, especially passive ones, assuming some form of outperformance is the goal. ETFs may or may not be low cost "exposure" to sectors, but the lack of design in passive ETFs means that you're left bobbing on the market tide so you'd better like the market if you want something special from performance.

That leaves your investment selection skills or somebody else's. Most money managers are generally beta providers - their results also bob up and down with their markets. It's hard to pick winners in a losing market and vice versa. Those Fidelity funds mentioned are good funds, did a little better than the market over the last 12 months and I think are good ideas conceptually, though Low Priced Stock is awfully large which somewhat undermines its ability, perhaps, to pick stocks rather than bob on the tide of risk-on that is implied with low priced stocks. Oracle is its third largest holding, a high priced stock with a huge market cap.

If you don't want to pick stocks (and at the size of funds we're talking about, I'd be inclined not to unless you get very high insight on a particular story), and you understand that what counts is performance over the next decade or two, not the next year or two, then you have to think about big themes. The decline of the American story and our relative position in the world is the biggest long-term theme to consider. China, Brazil and related economic beneficiaries deserve exposure given what you already own, although emerging markets have run up a lot as well and may have major setbacks several times in coming decades.

FLATX and MCHFX are worth looking at for market exposure and typically some extra picking ability as well (full disclosure: I own both). MAPIX has better recent performance and you may like the description better.

and he wrote this all before breakfast! :rolleyes: :beer: :banana: :)

[Ralph]

You don't have to buy a fund specializing in foreign stocks to get foreign exposure. You maybe would be more comfortable buying a fund specializing in large cap American companies, many of whom are now getting much of their sales and profits from foreign countries, such as the auto's, drugs, commodities, energy, banking, etc. No matter how you invest globally, you still have to handle the currency risk, as you convert prices back to dollars. Something I figure GE or Ford can do better than me. I prefer getting my foreign exposure from companies I know something about. I usually do individual stocks, but wife prefers the ease and comfort of a large cap American stock fund for her global exposure.

[Fixed]

best of luck
cheers

[veloduffer]

I would suggest splitting between a global allocation fund that can invest in stocks and bonds globally. First Eagle Global is a good fund with Class A (front load 5%) and Class C (level load) shares. Basically managers are not pinned down to any particular investment style and have flexibility, which I think is important given the higher market volatility and potential market events (Illinois default, Euro union breakup).

The other half I would invest in an index fund or ETF that mirrors the market (S&P, Wilshire indices). Low cost and efficient.

I work in finance on Wall St, but this is what I do for my own accounts. Not trying to hit home runs, just steady growth (singles, doubles) that minimizes risk. You are fairly young, so you have a long investment horizon and can take more risk than others.

[97CSI]

Fidelity's fund FLPSX and FNARX and FCNTX have been very good to me.. and I think they will continue to do so.Same here for FLPSX, FICDX (should do well long-term due to their huge supply of natural resources of all types - largest uranium deposits known, oil, gold, rare-earths, etc.). For stocks, GE is likely to do well long term and pays 3.5%. TGMNX also has done well over the past couple of years. As stated above, for stocks pick large U.S. based as they are or are becoming more international. Pick companies that make things. Always more value-added, long-term, if they do. One reason I like Fidelity is they are relatively inexpensive and allows one to invest in most vehicles out there (TGMNX is not a Fidelity fund, for instance). Split the money and pick four (4) funds/stocks and forget it.

[C5 Snowboarder]

FLATX and MCHFX are worth looking at for market exposure and typically some extra picking ability as well (full disclosure: I own both). MAPIX has better recent performance and you may like the description better.

Good write up centaur -- Yes - FLPSX is more a mid cap now -

I also own FLATX so I would echo that one too.. but lets add one more in if you are looking more global.. I like FNORX a little better than FLATX. I own both but the Nordic one has well outperformed the Latin America one.

A side note -- and some may not agree here.. I would never buy a fund that has a front end or a$$ end load, like the one mentioned above that carries a 5%.. why give up 5% of your $$ when that fund basically parallels a generic no load fund. NASDAQ and QQQQ beats it hands down by about 10% in the past year when you take in your intitial 5% loss and QQQQ only cost you about 7 bucks to buy it.

[Pete Serotta]

and he wrote this all before breakfast! :rolleyes: :beer: :banana: :)


1centaur knowledge, insight, and caring for others has always impressed me. Hope to meet him on a ride in 2011. PETE

[1centaur]

Well after breakfast, climb. I saw the question and then thought about it on the commute in. Having a Bloomberg in front of me helps know performance numbers and portfolio holdings of specific funds.

Pete, you are too kind as always. We are far apart geographically and I take vacations with my wife or 1 day at a time to ride my bike where I live, so we may never ride together, but I am sure we would enjoy it.

[chismog]

Interesting no one has chimed in with the alternative: do nothing with the rollover for a while. Of course, this depends on your view of where the market's true value is, but consider that rushing right back in is not the only strategy.

YMMV, but when I did this in 2000 it was a terrible time to reinvest. Also, because I put ALL the rollover money to work at once, I didn't get the benefit of the dollar cost average. I lost most of the rollover but learned a valuable lesson: keeping some powder dry might be a good thing. If things go south from here, it's a buying opportunity and you'll want cash to deploy, and your money will buy that much more. If they go up, you're still invested in your 401k as a hedge.

Another strategy might be to convert the rollover to a Roth. You'll pay a tax hit to do this, but if you don't currently have a Roth there are some real advantages to it you should consider. Aside from the obvious tax implications at distribution, the Roth allows you to withdraw contributions penalty free and tax free. This makes it a terrific worst-case-scenario emergency fund.

[tuxbailey]

Put a little bit in DNDN.

Disclaimer: My advice is worth as much as I charge for them :D

[Smiley]

Yeah I am with Centaur and have spread the wealth to Developing, Euro and international markets. Most US companies are getting their profits overseas now. Good luck with what u do.


may I add that these global plays I do through Vanguard funds and the loads are low especially if your holding the funds for their 3 year period or more. Good luck but think GLOBAL for some of this cash :)

[rdparadise]

There's been some great free advice here so far and I'm sure it's appreciated by the poster.

Right now, I would consider opening a brokerage rollover account with an institution of your choosing. This gives you the chance to buy individual stocks as well as funds and ETF's. While I believe the market is a little overheated right now, I'd take a wait and see approach for the next 1-2 months, or you could dollar cost average and buy in at 10 or 20% clips over several months.

Since August this market has pretty much gone straight up without a 5 or 10% correction. Historically, this is unheard of in the past. Therefore, my idea that we may be a little overheated at this point.

I sincerely like a couple of individual plays, once a little correcting takes place. These are Amazon, AMZN, Netfliks, NFLX, Apple, AAPL and good old Ford, F. All of these 4 have had a pretty substantial run up in 2010, so they may be up for a little correcting. Holding these for at least the next 5 years will make you some really nice returns. Out of these 4 my fav is F, which was up 19% in sales in 2010 and should grow even more in the coming 24 months. Missteps by Toyota, their lack of bankruptcy, really great cars/trucks and Alan Mulally are reasons for continued success. Beyond that, we'll have to wait an see. Last year, the USA sold 12.1 million cars. In 2007, over 17 million cars were sold. If we ever get back to that level, all of the autos will rise substantially, and the US automakers may benefit the most from a streamlined cost structure.

Anyway, enough of my soapbox, go ride your bike and invest your money! :cool:

Take care,

Bob

[C5 Snowboarder]

I sincerely like a couple of individual plays, once a little correcting takes place. These are Amazon, AMZN, Netfliks, NFLX, Apple, AAPL and good old Ford, F. All of these 4 have had a pretty substantial run up in 2010, so they may be up for a little correcting. Holding these for at least the next 5 years will make you some really nice returns. Out of these 4 my fav is F, which was up 19% in sales in 2010 and should grow even more in the coming 24 months. Missteps by Toyota, their lack of bankruptcy, really great cars/trucks and Alan Mulally are reasons for continued success. Beyond that, we'll have to wait an see. Last year, the USA sold 12.1 million cars. In 2007, over 17 million cars were sold. If we ever get back to that level, all of the autos will rise substantially, and the US automakers may benefit the most from a streamlined cost structure.

Anyway, enough of my soapbox, go ride your bike and invest your money! :cool:

Take care,

Bob

Dont forget about AA -- they will make money before the auto industry does... it takes a lot of aluminum to build those suckers... and here in the NW they just anounced hiring back the employees and more new hires and restarting of a plant or two... indication we are in for a good start of 2011 -- so go AA - I bought a bunch in Dec.

[endosch2]

I was just looking at my funds this year - the T Rowe large cap funds did anything between 12-16%, the mid market small caps did 22% and the winner for me was T Rowe Price New Horizons at 37%. I think you should be in the mid and small caps - diversify over a range of industries. My old rollover that I have invested in 7 stocks - Deere, United Airlines, Dentsply International, JNJ, Southwest Airlines, Costco, Metabolix (avoid!) Sirona Dental Systems, returned 22% in 2010.

[MadRocketSci]

Put a little bit in DNDN.

Disclaimer: My advice is worth as much as I charge for them :D

+1

Was thinking about mentioning DNDN, however wanted to see what the quick conference call today was all about. Short version, everything seems to still be on track.

DNDN is hardly unknown, and over the years has been a drama queen roller coaster ride, with battles against the FDA, and now the CMS (ie medicare reimbursement), the small uncertainty of which is keeping the price down at pretty reasonable levels. Very interesting stock to follow over the years, with plenty more excitement to come. But, in the end, I do think that the company will do very well over the new decade, and that it is currently undervalued, unless someone else comes out real soon and outright cures prostate cancer with a convenient blue pill (not likely).

Other promising biotechs are SGEN (Seattle Genetics) and ISRG (Intuitive Surgical). These should do well over the coming decade.

Like mentioned above, don't shoot your wad all at once. Ease in over time. This market will likely remain volatile, especially with the frothiness going on in China. Consider cash an asset class like everything else.

Long term, I'm on the food bandwagon. Starting to transition some of my long held precious metals to food commodity related etf's and etn's, like DBA, RJA, and MOO.

[1centaur]

Biotech was one of the first areas where I thought an ETF might be good (several years ago), as I just thought I wanted "exposure." But when I went through the holdings I saw the massive Amgen weight and thought I was not getting good diversification for the fees, and that surely a manager would do better eliminating the stinkers than an ETF. But generally over a long period I think Biotech is a good idea to outpace GDP/dollar type concerns.

Since I am too lazy to open up Bloomberg Anywhere, what are those food ETFs holding, and what's the thesis - too little food production for population growth in emerging markets?

One idea I read from a hedgie that has merit is that cocoa will become a very scarce commodity because massive new populations will want to eat chocolate and the Ivory Coast is the only place with perfect cocoa growing weather - there just can't be enough supply. There's an ETF that rolls cocoa futures, but it's expensive. Also, as I vaguely recall the math, an ETF invested in futures reduces its exposure over time as prices increase via the cost of the roll, all else equal, while a managed futures manager does not, making an ETF a very inefficient way to play the story. I am not locked in on those details.

[Ralph]

Being retired from the financial services business.....one of Will Rogers "sayings" comes to mind.

"I'm more interested in the return of my capital than the return on it". Maybe that applies to some of us.

Good ideas above, but keep in mind stocks have been in strong rally mode for almost 2 years, and on average you only make money in stocks 3-4 years out of each busineswsw cycle. I own many of the stocks mentioned above, F, AA, CAT, BAC, GE, and others. And they have doubled and tripled (in some cases) from their Feb 2009 low, so I'm now thinking about when to sell in the next year or so, more so than buying now. When the average investor gets comfortable again with the idea of investing in this improving economy, I'm more interested in slowly being a sellor than a buyer. I've also got a big position in a junk bond fund up about 50% in last couple years I have to decide about also. Be careful about investing in so called hi quality bond funds now, in this period of improving economics and rising interest rates. Some make this mistake.

There are always special situations a professional can invest....commodity shortages, short squeezes, arbitrage situations, going short, etc. But most 401K investors won't/can't take advantage of that.

[1centaur]

Many great points, Ralph. We had not talked about bonds, but it's very important to realize that bonds have benefited from 20 years of declining rates (down rates = up prices), and now we may face many years of rising rates, thanks to inflation, stagflation, decline of the dollar, etc. Lots of high quality bonds (and Treasuries and agencies) have very low coupons and bond math is unrelenting - up rates mean down prices, and with low coupons prices are particularly sensitive to rates. Bonds were typically the place to go hide but they won't be if rates rise over long periods. This is also a problem for muni buyers - tax free is nice but down prices are not. Holding shorter term bonds to maturity is a way to get around price decreases if they are below par today, but you won't get much return that way (notably the OP has a long runway to retirement).

Junk bonds in 2011 are expected by most sell side strategists to return 6-8% due to low defaults and where alternatives are. They are not immune to rising rates but insulated a little by their coupons and their credit-specific nature (i.e., default risk), unlike investment grade bonds.

Doing nothing (cash) is always one alternative to the investing decision, but it's not a free decision, potentially. If junk is up 6% and stocks are up 10% (let's say) because the economy is improving, China does not blow up and Europe has suppressed its demons for a couple of years, a cash holder will have left money on the table waiting for a big swoon that may not come for several years, or a correction that may not invite a full investment in its face. For nervous investors waiting for the slow fat pitch, I might be more inclined to go with junk or good dividend paying stocks given how early we are in recovery and then rotate into riskier things if the opportunity presents itself. That said, most retail investors are not that nimble or sure of themselves, so if they go to cash now they may still be in cash 3 years from now as the "it's expensive" thesis just grows in credibility through the period. The Fed is TRYING to make things expensive, they are trying to force investors into equities, and as expected returns get further squeezed they may succeed. That the stock market will have corrections along the way can't be a reason to stay out; that it has not had one lately may be a reason to take your time finding the right investments, though from what I see in credit this will be a very strong quarter of performance.

I worry more for the 5 year investor than the 30-year investor in this market. It's not Internet stocks in 2000 today; there's plenty of skepticism in prices, even if they are not cheap. The market is climbing a wall of worry rather than capitulating.

[Pete Serotta]

Lots of good info from RALPH and also from many others here. Read it, and digest all of it as good info for how to move ahead with your 401k,

Be very careful of bonds for rates have more risk of going up than down as we move ahead. The longer the term of the bond the more risk for its value going down.

There are also some low rated (aka could be junk) bonds around for they have a higher yield but more risk) Not a choice of mine

Your years to retirement and investment plans need to be considered in risk vs potential return on various instruments.

[Climb01742]

i'd just like to thank all the folks who've taken the time to post their (thoughtful) thoughts on this thread. it's been an education. i appreciate that you've shared your knowledge and insights.

[97CSI]

Will add another reason have settled on Fidelity for our accounts. Their website is very good. Can't say it is any better than Vanguard's or T.Rowe Price's, etc., but find it easy to navigate and provides access to about as much information as it is possible to digest. $7 trades are decent.

No one has mentioned Morningstar (or I missed it). While it is far from perfect (being paid by those it rates), if you have access to their ratings on funds it will give you an idea of performance over the longer-term, which is important in making decisions. Read Bogle's book. Afterall, he invented Vanguard.

[Pete Serotta]

Thankyou !!! And for any that I slighted please accept my apology and feel free to send a note (or post here) and then kick me in the butt. Free drinks to you will follow. PETE

[MadRocketSci]

Biotech was one of the first areas where I thought an ETF might be good (several years ago), as I just thought I wanted "exposure." But when I went through the holdings I saw the massive Amgen weight and thought I was not getting good diversification for the fees, and that surely a manager would do better eliminating the stinkers than an ETF. But generally over a long period I think Biotech is a good idea to outpace GDP/dollar type concerns.

Since I am too lazy to open up Bloomberg Anywhere, what are those food ETFs holding, and what's the thesis - too little food production for population growth in emerging markets?

One idea I read from a hedgie that has merit is that cocoa will become a very scarce commodity because massive new populations will want to eat chocolate and the Ivory Coast is the only place with perfect cocoa growing weather - there just can't be enough supply. There's an ETF that rolls cocoa futures, but it's expensive. Also, as I vaguely recall the math, an ETF invested in futures reduces its exposure over time as prices increase via the cost of the roll, all else equal, while a managed futures manager does not, making an ETF a very inefficient way to play the story. I am not locked in on those details.

Food - can be an inflation hedge, kinda like gold.

Wealthy chinese like gold, ipads, coach bags, and food.
All the other chinese can't afford much gold, ipads, and fancy bags, but still like food.
(the cantonese eat on the hobbit schedule :))
In the long run, china will do well. Expect it to be a bumpy ride though. Their real estate market is like Florida in 2006....the difference is that they pay cash for their real estate speculations, so incur less systemic risk in their housing bubble.

Good point on the etf's, there are issues, especially with contango and backwardation, but for the individual retail investor i haven't found anything better, and I appreciate the liquidity.

the latest DBA holdings are here:
http://www.invescopowershares.com/products/overview.aspx?ticker=DBA

MOO, which is a food, food picks and shovels (deere), and fertilizer etf holds:
http://www.vaneck.com/funds/MOO.aspx

yes, everyone likes chocolate. I'd also throw coffee in there too....

edit: the simplest case for food I can make is this: The chinese have many, many dollars (like 3 trillion or so) in reserve. What does the US have that they (will) want, that they can't make enough of themselves? Food. Anything else, unless it is a brand name status thing (like Apple and Coach stuff), they can pretty much copy or make themselves.

[1centaur]

Not bad holdings for the ETFs.

The only other issue I have with some ETFs is that they were created as LPs and file K-1s. I can't stand waiting for late K-1s in tax season, so I have to pore through every prospectus to make sure on that issue.

[marle]

Hello Money Guys,

I have 21.5K from a rollover that I need to redistribute. I'd like to spread it out over 4 or 5 funds/stocks ect. My existing 401K is spread out over mid and large cap funds in Fidelity.

I'm 36 and would like to retire at 65 (who the heck knows what it will be in 29 years)

Any recs?

If you're 36 you should put your money in a target date fund -- 2040

http://personal.fidelity.com/products/funds/content/DesignYourPortfolio/target_timelinefunds_freedom.shtml.cvsr

[eddief]

i swear 80% of bikes on club rides are carbon. it is a miracle fiber. so then i found the company Zoltek that makes the raw carbon fabric, etc. and they are also focused on manufacturing blades for giant wind turbines. i was thinking carbon must have nowhere to go but up up up. i bought some and it is up up up 20% in about a month. just a somewhat intuitive crap shoot. i'm hopeful: stock symbol = zolt. i am not a broker nor do i play one on tv.

[Louis]

then i found the company Zoltek that makes the raw carbon fabric, etc.

For years and years my old route to work (driving, not riding) took me right by the Zoltek corporate headquarters, here in St Louis. You can see the building and sign from the highway. Since we use lots of CF for our products they've been a favorite investment for some of the engineers I work with. I have no idea if they've made much money with them or not.

Good luck.

[tuxbailey]

+1

Was thinking about mentioning DNDN, however wanted to see what the quick conference call today was all about. Short version, everything seems to still be on track.

DNDN is hardly unknown, and over the years has been a drama queen roller coaster ride, with battles against the FDA, and now the CMS (ie medicare reimbursement), the small uncertainty of which is keeping the price down at pretty reasonable levels. Very interesting stock to follow over the years, with plenty more excitement to come. But, in the end, I do think that the company will do very well over the new decade, and that it is currently undervalued, unless someone else comes out real soon and outright cures prostate cancer with a convenient blue pill (not likely).

Other promising biotechs are SGEN (Seattle Genetics) and ISRG (Intuitive Surgical). These should do well over the coming decade.

Like mentioned above, don't shoot your wad all at once. Ease in over time. This market will likely remain volatile, especially with the frothiness going on in China. Consider cash an asset class like everything else.

Long term, I'm on the food bandwagon. Starting to transition some of my long held precious metals to food commodity related etf's and etn's, like DBA, RJA, and MOO.


I am in it because of its science and the promise of that science is. I have been in there since 2007 and therefore had developed a strong stomach for it.

I don't advise anyone to put a lot in it. But setting a small part of your portfolio in it will pay off handsomely in the 1-2 years. All in the name of diversification.

[MadRocketSci]

I am in it because of its science and the promise of that science is. I have been in there since 2007 and therefore had developed a strong stomach for it.

I don't advise anyone to put a lot in it. But setting a small part of your portfolio in it will pay off handsomely in the 1-2 years. All in the name of diversification.

Background: DNDN is the first company to have an FDA approved cancer vaccine that shows improved survival over the standard of care, Taxotere, which is a chemotherapy. Its advantage is improved median survival time and very benign side effect profile (flu-like symptoms for a couple of days, like any other vaccine can cause).

I disagree with the "small" part of the portfolio. I estimate a 90% chance it will appreciate well in the next few years, which is much better than I can say for any other investment vehicle. The 10% chance of depreciation is if the CMS does something incredibly stupid (scientifically, and politically) and denies payment this year. Also included in that 10% is the chance someone comes out with the miracle cure for prostate cancer in the next few years.

Yeah, I've been in it since around early 2007, before the IMPACT results came out. It's been a fun, sometimes very frustrating ride, but I think there is only one little obstacle left and the stock will appreciate with revenues.

Biotech is not in an overbought situation; I cannot say the same thing about my other holdings.

[fiddlels]

I second the IRA rollover idea in Fidelity. The investments can be transferred without selling anything. Mutual fund exchanges or purchases are commission free and stock transactions are only 7.95 each.

[97CSI]

"The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New," by well know market commentator Professor Jeremy Siegel is also a good read.

If you are going to 'self direct' your investments you cannot have too much info. Sign up for Morningstar and you'll get plenty.

[C5 Snowboarder]

+1

Was thinking about mentioning DNDN, however wanted to see what the quick conference call today was all about. Short version, everything seems to still be on track.

DNDN is hardly unknown, and over the years has been a drama queen roller coaster ride, with battles against the FDA, and now the CMS (ie medicare reimbursement), the small uncertainty of which is keeping the price down at pretty reasonable levels. Very interesting stock to follow over the years, with plenty more excitement to come. But, in the end, I do think that the company will do very well over the new decade, and that it is currently undervalued, unless someone else comes out real soon and outright cures prostate cancer with a convenient blue pill (not likely).

Other promising biotechs are SGEN (Seattle Genetics) and ISRG (Intuitive Surgical). These should do well over the coming decade.

Like mentioned above, don't shoot your wad all at once. Ease in over time. This market will likely remain volatile, especially with the frothiness going on in China. Consider cash an asset class like everything else.

Long term, I'm on the food bandwagon. Starting to transition some of my long held precious metals to food commodity related etf's and etn's, like DBA, RJA, and MOO.


not a good day to own DNDN.. but maybe a good day to buy,

[MadRocketSci]

Ha! what an understatement...

Great example of why going on margin is a very bad idea. Much of this huge drop (~66%) is due to forced selling to cover margin calls. I'm shopping here, also looking at other names.

Feels a bit like 2008...that was also a fun ride :)

But, I will issue my mea culpa. I just didn't see that coming. In hindsight it does make some sense, though confidence in DNDN management is thoroughly thrashed. But at 11-13, seems like a good price (trading shares only) for anticipated slow recovery at the end of this year. Or a buyout. Still believe the product is the best option for those with prostate cancer.

As always in the stock market, we're all responsible for our own DD.

p.s. this pretty much leaves gold as the last attractive asset class. However, would not be surprised if it also sold off in the short term as people try to raise cash.

[Pete Serotta]

from a 2011 tax avoidance try to rollover check going from the 401k to your firm doing the new 401k,

If you chose not to do this keep in mind you have 60 days max from when you get it it is in and credited to the new one (per IRS)

or you pay fees and taxes or both) plus a possible 10% penalty. THis is why it is always safe to have 401K make check out to your new 401k. (It never was in your name that way. Ask yourself why you are rolling over and does it accomplish what you are doing it for.

[54ny77]

You should get yourself some European exposure by picking up a Super Record 11 group, and Asian exposure with a Di2 group. Balance that out with a couple of stable domestic assets such as a Serotta Meivici and if you're feeling frisky, dabble in metals with a Legend Ti. Your portfolio will then be complete.

[97CSI]

not a good day to own DNDN.. but maybe a good day to buy,Market timing is a notorius was to lose. Tomorrow (and the next day, etc.) could easily be more of the same. Think I'll wait.

[biker72]

Vanguard Index 500 fund. VFINX
Look at the Morningstar rating.
Look at the performance.
Look at the expense ratio.

Exchange Traded Funds ETF have become popular.
Schwab, Vanguard and a host of others have these at low or no cost.

Do some research.

[Aaron O]

Send it to me - I'll invest it into the grey market and double your money in 3 months. I'm thinking a replica Circuit City in China.