I went through all the investment ideas at Play the Annual Invest Lazy Man’s Money Game and Win $25 and found nothing that stood out as what I was looking for.
I thought that the single stock suggestions a little too risky… blame Worldcom 10-12 years ago. I haven’t fully recovered for it.
I’ve historically been against gold, because of its lack of intrinsic/practical value. Tommy Z made a case, but Kosmo’s response matched my own thoughts, except that I, and everyone I know prefer the look of silver/chrome/titanium to gold in jewelry. My wife was willing to get me a wedding band of whatever I wanted, but the $99 titanium looked the best and was the strongest and cheapest. Gold loses in every way.
In the end, I think Contrarian made the most sense. His words were exactly what I’ve been thinking with the following, “Our economic recovery and subsequent rise in stock prices has been on the back of a toxic brew of $7 trillion in reckless government debt, ZIRP, Bank bailouts, QE1, QE2, Operation Twist, periodic massive liquidity injections and ultra low interest rates.” In fact he’s added a few more thing that I had missed like Operation Twist. I can’t use his suggest to buy put options on SPY, because I don’t have options trading for my SEP-IRA. For this reason Contrarian wins the $25.
However, recognizing that, I would have hoped that there was a better suggestion than holding cash. That’s especially true if that currency is the one that was propped up by all the above things. I was thinking that maybe investing in foreign stocks could be the answer, but if the US economy gets sick they’ll probably catch the sniffles as well.
In the end, I think I’ll just keep the SEP-IRA in cash and buy on market dips.