Dear friend, when considering an investment of 100,000 USD, the decision between a plot of land and blue-chip stocks depends on numerous factors. Let's delve into the nuances of both options and explore considerations that can help you make a wise choice.

Long-Term vs. Short-Term Investment

Over the long term, both an investment in a plot of land and blue-chip stocks can be fruitful. However, in the short term, typically 2-3 years, stocks tend to offer better returns due to their volatility and the potential for rapid appreciation. Over a period of 5 years or more, a plot of land often proves to be a better investment due to its stable and predictable growth. Each option has its peculiarities and benefits, making the decision contextually significant.

Emerging Markets: Turkey as a Case Study

For those considering emerging markets, like Turkey, the stock market shows promise, with rates expected to stabilize after reaching equilibrium. Turkey, being a region through which many nations transit, presents a unique opportunity. Rental guarantees are common, and due to devaluation, real estate prices in dollars have reached their lowest in recent years (since the early 2000s).

Buying property in Turkey, under the right conditions, can be a smart move. However, it's crucial to evaluate the market and the potential for returns. Real estate offers lower returns if you are not a seasoned investor, but for those willing to put in the work, it can be a rewarding investment. Alternatively, turning to blue-chip stocks can offer better returns in the long run and allow for reinvestment or further property acquisition.

An Alternative Path: Timber Properties and Rural Land Investment

A unique method to invest that doesn't necessarily involve a direct buy in either stocks or real estate is to invest in timber property. By selectively cutting trees and getting your money back, you can recycle the profits to acquire more property. Additionally, subdividing the land into separate parcels and selling on owner contracts can generate a steady cash flow.

This approach, which I adopted in 1991 with just 26,000 USD, can be highly profitable. Once you have a steady cash flow, you can further invest in dividend-paying stocks and options like out-of-the-money calls to collect more income.

Investment Considerations:

Understanding Your Risk Profile: Assess your tolerance for risk and ensure that the investment aligns with your risk profile. Your Asset Allocation: Determine the percentage of your overall assets you should invest in different sectors. Current Financial Situation: Document your assets, liabilities, and current financial status. Insurance Coverage: Ensure you have the necessary insurance to cover both short-term and long-term risks. Tax Planning: Utilize all available tax-saving instruments. Net Cash Flow: Plan for monthly or annual income streams. Financial Goals: Set clear, achievable goals for different time periods.

Based on your financial plan, you can then determine your next set of asset allocation. Consulting a financial planner can also provide valuable insights and answers to your investment queries.

Remember, each person's financial situation is unique, and thus generic advice may not be suitable. Tailoring your investment strategy according to your specific needs is key to success.

May your investments yield profitable returns, and have a very happy new year 2019. Happy investing!