Am I doing the right thing if I decline any investment offer?
Thanks for the A2A. As others have responded, it doesn't make sense to take a categorical and inflexible position on this question. Your decision would depend on the terms of investment, the profile and the value add of the investors (beyond the money) and the fit of the proposed use of funds with your strategic plans. Hope that helps.
Am I doing the right thing to sleep on my 100K in savings until stocks and a real stock market crash to invest?
I recall an article, I think by John Authers at the Financial Times, describing what would have happened to an investor (with perfect foresight) that sold everything at the top of every stock market bubble and bought at the very bottom. Needless to say, that theoretical investor did very well indeed.The challenge here is in knowing when the bottom is. For instance, the painful correction in Jan/Feb 2016. Or the post Brexit referendum FTSE "flash crash". They could have easily turned out worse. You may think you've bought in "post crash" and lost 20% the week after.Two pieces of information can help: first the consolation, if you have a US focus, that the S&P 500 has always recovered and surpassed previous peaks after each crash. In that sense, buying at any discount to a peak has eventually worked out.The second, more anecdotal, is the "blood on the streets" Buffet trope. Signs of capitulation in the markets - utter defeat, no buyers - sometimes indicate the weather is about to turn. Two recent examples are the oil price turnaround (went back up in Feb 2016 after reaching a multi decade low) or the recovery in the Brazilian real.Don't take this as investment advice, but my practice is: keep some dry powder. I buy in companies I truly believe in, and average down if the market corrects. After corrections, I use some of the dry powder on bargains. This way, I may miss on investing the entirety of my money on bargain basement occasions, but also I avoid having every penny sit idly as I wait for an opportunity that may not come for a long time, if ever.
How do I know the right thing to invest in at the right time?
There is no right time to invest.There are wrong times, perhaps.You have to ask yourself, if an asset is overvalued or undervalued, and if its future corresponds to your investing goals.Hindsight is 20/20.If you attempt to time the market, most likely you will lose. Even the profession fund managers tend to lose.I think it's valuable to understand what a bubble is and to avoid buying into it.But the surest way to lose is to not have a strong stomach and not know your goals when the market goes sideways.The short version of it is, are the P/E ratios good? Is there a history of dividend growth? Is the customer base growing or shrinking? Are they the best or the worst in their industry?Timing is almost irrelevant. If you wait forever you might get a 30% discount. Or you might pay 50% more due to market growth.The right thing is a good company. A great company you truly understand at an inconvenient time can be great for you as an investor.But you probably do better just buying the index. You take a risk when you buy a company that's suffered a setback.In a recession you have more opportunities. And in a market panic, like in December, even more.But it still comes down to knowing good from bad. The market ultimately will decide so that's why it's easier and often more profitable to just buy an index fund like VOO or ITOT at a good time.
Do you think foreign investors should have the right to intervene in another nation’s affairs to protect their?
Yes. Let me put it this way: If I invest 10 thousand bucks into the construction of a new community center in a town 100 miles away, and I discover that the 10 thousand bucks I threw down was being used to buy kegs for the laborers and new cars for the foremans... I have every right to stand in and say: that is not what I donated my money for. I donated my money for lumber and drywall! I am coming in with my men to make sure that the lumber and drywall are in place so that this community center is built and I make money on my investment! But, if I did not make it a condition of my investment that it be used in a certain way, then I made a poor investment and I do not have that right. If I give my children 20 dollars each week and don't tell them what its for: no doubt they will come to me two days from now asking for lunch money. But, when I tell them it is lunch money, then I maintain the right to reprimand them for their choice and pack their lunch. On a global scale: if country A gives country B money to develop their economical structure, and country B uses it to pay their debt off to country C, then country A should be able to step up and mandate that country B make some changes. I wish it was just that easy. But it never really is.
Is it the right time to invest in Indian stock market?
May be yes, especially when Rupee is cheap.How does cheap Rupee help?Lets take an example of ‘A’ staying abroad and wants to buy a notebook in India. For better understanding lets also assume that 1 notebook costs 30 Rupees. There were times when Rupee was 50 per dollar and if A had remitted 1 Dollar at that time, he would have been able to buy only 1 note book and retain 20 Rupees as cash. If he however, remits 1 dollar now when Rupees is 68 against a dollar, he will be able to buy 2 notebooks and also carry 8 Rupees back. Thus cheap Rupee helps you to buy more quantity with same money or spend less money to buy same quantity. To put it simple, it will increase your purchasing power.So how does it matter to invest in Indian Shares now?Just that you can buy more shares with the same amount of dollars that you remit. With many stocks trading much lower that 52 Week High in spite of Nifty having recovered a lot, gives one ample opportunity. Below given list of Nifty 50 stocks which are trading far below their 52 Week HighYou should also hedge yourself against falling Rupee and this can be done by buying IT and Pharma Sector stocks which are basically exporters. Exporters get more Rupee as against Dollar when Rupee weakens.There are records of Rupees 10000 investment multiplying to crores when done in right stocks. So, it is always an opportunity and an investment done for long term usually pays high. Especially due to bonus, rights etc., declared by the companies. Hence, it is essential to check for the behaviour of a company in deploying its profits, whether it rewards its investors in terms of dividends, bonus issues, rights etc., or does it simply plough back its profits. A company that has a profit of giving bonus will continue to do so whenever it has good profits transferred to its reserves and surplus. This history, which is available on websites will help you in choosing stocks that you may invest when they trade relatively low and when Rupees is cheap which ultimately enhances your purchasing power.You should now open a Trading account, Demat account, Bank PIS account and Savings to start investing in NRE mode. If you choose to invest as a Non Resident Origin, it is all the more simple. Open Trade, Demat and attach your existing NRO bank account or open one.Check Tradeplus for more details on opening account.
Have your investments with Lending Club done well?
My investments have done very well in Lending Club. I have been an investor on the Lending Club platform for well over 7 years now. During that time, my returns have been “as-advertised” - I typically invest in a conservative portfolio of A, B, and some C rated notes. My average returns over the full time I’ve invested have been between 5–6%, pre-tax. It has under performed the stock market, but this is a form of diversification for me, and I expected that would happen when the stock market is as strong as it has been over this time period.Several years ago, I opened an IRA account on Lending Club, in addition to my regular (taxable) investing account, and rolled-over funds from some old 401Ks into it.The caveat to this, is that all my investing experience in Lending Club is AFTER the 2008–2009 recession. The stock market, job market, and economy have all been growing during the time period I’ve been on the platform. I would expect in a recession, that my returns would drop significantly, and I would see a lot more defaults. My focus on higher-grade notes is an attempt to mitigate that downside that will likely occur in that scenario. In 2018, my Lending Club portfolio outperformed the stock market significantly, and I expect that will happen in future down markets.
How should I invest $150k?
You can't think that it's too late to jump in, that's a rookie mistake. There are always opportunities that can be exploited. For example right now the US economy is starting to show signs of turning around. But why would you want to invest in an economy that is just starting to heat up. Why not invest in an economy that is proven to be already underway and improving. For example, everyone is talking about how the Chinese are doing well, they are doing well because they are in an expansion phase of their economy. There are pleny of other economies that are in this expansion phase, Australia, Canada, and Brazil are all doing very well. Part of this is due to economic expansion, part of this is due to the falling value of the dollar and the rest of it has to do with the fact that these countries, have exceptional commodities that they can sell to the rest of the world and that commodity prices are constantly moving up. I recommend reading Jim Rogers most recent book about commodities and if you're convinced then I'd recommend that you buy shares in these countries. I will supply links to good ETF's below and the book in question. I highly recommend EWC