Quote:
Originally Posted by DrumNFeather
Let's say someone gave you 4 to 5 thousand dollars and told you to invest it anyway you wanted to, but that the investment period would be short term (2-3 years).
What would be the best way to invest that money to gain the most return?
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"Gain the most return" is a bit nebulous.
It might be better to state what is the worst result you could swallow and then use that to define your level of risk.
Assuming you would not be happy with loss of capital in that time frame, for that short of time I would say buy a dividend-paying stock or a CD. If you want to take a bit more risk, I've always had good success with relatively low volatility in regional bank stocks. The interest rate environment at the moment is not real good for them but could improve by your 2-3 yr time frame. One I like is IBOC in Texas. Stay away from the housing bubble states where defaults may rise. Your mileage may vary.