patrick.net

Specifically, I would put

20K on PBR. with dilution behind the company and no more dilution prospectively, it will be by far the fastest growing oil/gas upstream/downstream in the world. Little downside from here, terrific upside.

10K on PHM. Trading at 80% of book value and housing starts at historic lows and no dilution prospectively, 2011 will be the year that homebuilders turn the corner. Little downside but huge upside from here. In 5 years when new homes sold are back to the 1M level, this stock will be in the 30's.

20K cash/low yield account.

I'm guessing that for most, holding 40% in cash wouldn't yield better results, than investing most of it. You've definitely got the potential of finding amazing bargains, so having that cash ready to jump on them probably really benefits you. While the market might get bumpy for awhile, for most, having that 40% probably wouldn't do much. Perhaps leaving 10% in Cash in case of a great bargain would be great, or in case of an emergency, but 40% seems pretty high for most investors. The other 30-35% comes in terms of easy to obtain credit for most.

This is also based on previous messages by Kevin, showing he has a good grasp on his expenditures, a good paying job and probably very employable even in the event of a job loss. Compounded with the fact that credit is extremely cheap right now, even if he needed the money, he could wait several months for the market to change direction.

sell options

Gold miners
Potash Companies
Wait for oil to go below $70 and load up on solid companies there.

The stock suggestions are good, though I'm not sure if I can invest in most of those companies with a clear conscience. I mean, Altria is responsible for Kraft singles!

With inflation picking up, it almost seems like I could throw this money in a mutual fund with a cheap, fast wire transfer, and be just as safe as anything else.

Buy physical silver.

Here's what CNN recommends (lol):

http://money.cnn.com/galleries/2010/pf/1010/gallery.how_to_spend_50000.moneymag/

I haven't really looked at the pricing of Natural Gas, but I do know that it's price skyrockets when oil gets over a certain point, because it gets all sold to the Alberta Tar Sands, where it's used in the oil extraction process. Once it becomes cost prohibitive to use it there, the cost falls through the floor because they stop using it up there.

trade in the currency market.

If I had $50K that was my liquid safety net, I would send it to Vanguard. I would put some into their high yield tax free bond fund. I would put some into prime money market account. I would establish a brokerage account and buy a Gold ETF based on physical gold, not gold mine stocks. Gold is not a bubble, it's naturally rising because the dollar is being debased by low interest rates and increase in the money supply by the Fed, in addition to our increasing debt. The only time gold may be falling would be when our politicians have begun to act responsibly, and the gigantic debt of mortgages and the USA has been taken care of. I predict this may not happen within 10 years, if ever. It's not risky to have up to 10% of your financial net worth in gold. You could also put a few $ into Apple (AAPL) since this profit machine is not slowing down.

I'll look into PZE as well later.

Yes, PBR dividends have been cut drastically. They raised 75B recently in stock offerig (and 60B plan debt later) for the rights and capital needed to expand production. It is a huge expansion program and taking on a lot of debt for a 150B market cap organization. Wall street is spooked so the uncertainty (and Brazil election) is taking this stock to its 52 weeks low, which i think is a good buying point. Institutions are off this equity at the moment. Like RIG, V, BP and others, they'll come back eventually.