When I was 19 I got a summer job as a bank teller. It was the late 90’s and I can still remember that back then you could get a CD with an interest rate of around 4%. Now such a rate seems absurd especially when you consider that people are getting mortgages for around 3.5%. This morning, I looked all over and the best I could find was 1.8% on a 5 year CD. The cold reality is that the current economic conditions of the world no longer favors savers.
Everyone’s situation is different, but for many investing in the stock market may be their best bet. I know a lot of people are wary and the last 5 years have certainly proved just how crazy things can get in the stock market. I don’t think the next five will be any less volatile. Still, over the long haul, the stock market is still one of the best investment vehicles around.
This is why I have decided to invent a fake fund, “The Piggy Bank Builder Portfolio” to demonstrate what might happen if you invested 5000 dollars into the stock market. I am not offering investment advice, this is for demonstrative purposes only. I am not an investment advisor and I am not putting any of my own money into any of these stocks. My purpose is to provide you with a monthly tracking of what a potential investment might do, good or bad.
“The Piggy Bank Builder Portfolio” will include four selection, one ETF and 3 stocks. The 5000 dollars will be split evenly among them, $1250 be used to buy shares in each. Here are the selections for my fake portfolio.
- ishares Silver Trust (SLV) – is a silver ETF. Many investors are very passionate about precious metals, if they are right silver could have a very impressive move this year. Current price – $29.48, the fund will Buy 42 shares
- Cablevision (CVC) – I have worked for this company for many years, it is very well run and has something most people won’t go without, Cable/ High Speed Internet. Current price – $15.05, the fund will buy 82 shares
- Alpha Natural Resources (ANR) – We all know how quickly energy prices can spike up, if they do ANR should capture some of those gains. Current Price- $10.28, the fund will buy 117 shares.
- FaceBook (FB) – Last year was pretty rough on the worlds biggest social media company, I think this year might be a little better to it. Current price $29.22, the fund will buy 42 shares.
So there you have it. In a month from now I will revisit these stocks and see how they are performing. Over the next year we can see the ups and downs that come with investing in todays stock market.