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Old 02-14-2011, 05:35 PM   #1
TO1
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$100,000 portfolio project: 15% return

This is is an extra credit project for my Finance II class.
The rules are simple:
-$100,000 to invest (Trading simulator)
-The goal is a return of < 15%
-I have six weeks
-There are no penalties for not achieving this return, so the investments can be boom or bust

The moment the portfolio reaches 15%, I can stop right there. Suggestions?

Some background on me:
-7 year professional poker player
-Went back to school last year to study Finance (Interesting in Analyst and Trading positions)
-Very limited knowledge at this point
-Have been lurking this forum for a few months now (It has been an excellent resource so far)
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Old 02-14-2011, 05:47 PM   #2
FortFun
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Re: $100,000 portfolio project: 15% return

Quote:
Originally Posted by TO1 View Post
-The goal is a return of < 15%
1) Light money on fire
2) Achieve < 100% return
3) .......
4) profit (extra credit)

In all seriousness, learn how to use the greater than (>) and less than (<) symbols. Also this project is stupid since all it rewards is volatility and says nothing about savvy investing. Go big or go home since you only have 6 weeks, pick some penny stock that's touted by email or fax, great movement in those.
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Old 02-14-2011, 05:57 PM   #3
FlexNutz
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Re: $100,000 portfolio project: 15% return

agree with above

go here

http://www.google.com/finance/stockscreener

click add criteria

add beta

sort by beta, pick a stock with high beta
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Old 02-14-2011, 06:13 PM   #4
nuclear500
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Re: $100,000 portfolio project: 15% return

Pretty sure you meant > 15%


Go with an REIT like NLY or AGNC. Unless the stock drops in price (which is likely tbh), the dividend alone practically guarantees > 15%
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Old 02-14-2011, 06:25 PM   #5
TO1
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Re: $100,000 portfolio project: 15% return

Yeah it's a peculiar format for a Finance professor to use, particularly since I doubt I'll learn much from doing this. And ya > 15%...

So Beta refers to how an investment is doing relative to that finance market as a whole. When I add that criteria, what kind of time frame is that showing?
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Old 02-14-2011, 06:26 PM   #6
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Re: $100,000 portfolio project: 15% return

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Originally Posted by nuclear500 View Post
Go with an REIT like NLY or AGNC. Unless the stock drops in price (which is likely tbh), the dividend alone practically guarantees > 15%
Time limit is 6 weeks.

This project is dumb. Just randomly gamble it up.
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Old 02-14-2011, 06:37 PM   #7
dc_publius
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Re: $100,000 portfolio project: 15% return

Tell your prof to grow some balls and put something on the line so that people take it seriously. 15% of your grade sounds about right.
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Old 02-14-2011, 06:39 PM   #8
dtan05
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Re: $100,000 portfolio project: 15% return

seems like just a free chance at extra credit - i'd just buy a bunch of options.
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Old 02-14-2011, 06:47 PM   #9
guids
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Re: $100,000 portfolio project: 15% return

buy yourself a monkey

http://www.dailymail.co.uk/news/worl...portfolio.html
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Old 02-14-2011, 06:55 PM   #10
SuperWhale
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Re: $100,000 portfolio project: 15% return

Which school is this?
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Old 02-14-2011, 07:43 PM   #11
Freakin
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Re: $100,000 portfolio project: 15% return

Is this for college or junior highschool? These kinds of assignments are such a stupid idea with nothing at stake.
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Old 02-14-2011, 07:59 PM   #12
Twentyonenil
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Re: $100,000 portfolio project: 15% return

ProShares UltraPro S&P500 (UPRO)
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Old 02-14-2011, 07:59 PM   #13
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Re: $100,000 portfolio project: 15% return

Best bet; go long XIV (this is an ETN that is short VIX futures). These futures have a very high premium (because the volatility of volatility is very high) so when markets stay calm you should be able to make 15% in 6 weeks. If they don't this will drop like a rock.

A more complicated strategy would be to try to take binary bets - start with 15K - and double when you lose. Problem is finding a suitable vehicle to make these kind of bets on the stockmarket; but I'm sure it's there.
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Old 02-14-2011, 08:05 PM   #14
TO1
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Re: $100,000 portfolio project: 15% return

Clearly this assignment is not optimal for my learning experience, so maybe we can get past that. I'd prefer to see more constructive responses. Much thanks for the few serious responses so far. For what it's worth, the extra credit is adding 3 grade levels to our lowest test score (what a nice professor, I know).
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Old 02-14-2011, 08:07 PM   #15
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Re: $100,000 portfolio project: 15% return

Quote:
Originally Posted by Brons View Post
Time limit is 6 weeks.

This project is dumb. Just randomly gamble it up.
ha, I'm blind. I didn't catch that.
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Old 02-14-2011, 08:07 PM   #16
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Re: $100,000 portfolio project: 15% return

Quote:
Originally Posted by FlexNutz View Post
agree with above

go here

http://www.google.com/finance/stockscreener

click add criteria

add beta

sort by beta, pick a stock with high beta
this is probably by far the best advice u can get. buying something safe = autolose
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Old 02-14-2011, 08:15 PM   #17
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Re: $100,000 portfolio project: 15% return

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Originally Posted by tastychicken View Post
this is probably by far the best advice u can get. buying something safe = autolose
This is still too safe, and has too much upside. You should try to pick something with 15% upside, and 100% downside.
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Old 02-14-2011, 08:18 PM   #18
roundroom
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Re: $100,000 portfolio project: 15% return

buy "blap" and "mjna". wait a month and sell em if they dont explode. i would buy as much as you can. go big or go home. try to short a big stock. im full of awful advice, except for this project.
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Old 02-14-2011, 09:15 PM   #19
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Re: $100,000 portfolio project: 15% return

Quote:
Originally Posted by Hielko View Post
This is still too safe, and has too much upside. You should try to pick something with 15% upside, and 100% downside.
if he can trade options, you can do this by selling covered puts on exactly 15% upside.

if he can only trade stocks, then buy FAS (3x financials) with a sell order placed at 115% the value of the trade.
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Old 02-14-2011, 10:19 PM   #20
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Re: $100,000 portfolio project: 15% return

I'm surprised it hasn't been suggested yet, but why don't you cheat?

Can you backdate your stock trades? If so, that's your best bet - buy today's stocks yesterday.

If it's a web-based tool see if you can multi-account and just gamble a bunch of times.

Alternatively, I would recommend dumping all $100k into a junior Canadian Mining company like Trade Winds Inc. (TWD). It trades on the TSX-venture and has been known to go up or down 10% or so a day.

Pick that or another one at random, and then just hope you get lucky.
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Old 02-14-2011, 10:19 PM   #21
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Re: $100,000 portfolio project: 15% return

can you trade Forex for this or does it have to be equities?
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Old 02-14-2011, 10:59 PM   #22
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Re: $100,000 portfolio project: 15% return

Just put everything in CLDA and hope to ride the momentum.
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Old 02-15-2011, 01:21 AM   #23
RikaKazak
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Re: $100,000 portfolio project: 15% return

Take your head, smash the keyboard, whatever first 1/2/3/4/whatever letters you smash, buy that stock, but do it on margin.
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Old 02-15-2011, 05:09 AM   #24
Zimbo0o
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Re: $100,000 portfolio project: 15% return

just put it on 'Red'

you'll endup +200k

Spoiler:
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Old 02-15-2011, 06:19 AM   #25
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Re: $100,000 portfolio project: 15% return

I would say go for a penny stock which is expecting news in the next 6 weeks, if you go for a mining/oil company and the news is good you'll make way more than 15%.

Here is an example...

http://uk.finance.yahoo.com/q?s=bem&ql=1

News was expected and it was delivered, the iron mine they have license to contains 400m tonnes of iron and then boom.

penny stocks, gogogogoogogogo.
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