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Best Investment Strategy For 2012 and Beyond

Best Investment Strategy For 2012 and Beyond

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Published by directorbcm
Best Real GOLD Business ! Multiply x 3 TIMES your initial investment forever. Get rid of risky investing operations !!

Best Real GOLD Business ! Multiply x 3 TIMES your initial investment forever. Get rid of risky investing operations !!

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Published by: directorbcm on Feb 20, 2012
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 ==== ====Best Real GOLD Business ! Multiply x 3 TIMES your initial investment forever. Get rid of riskyinvesting operations !!http://www.vipgoldplan.com/goldinvest/  ==== ====The best investment strategy for 2011 and beyond will vary from traditional investment strategy forgood reason. Today's investment scene and economic conditions are anything but normal. Herewe look at today's exceptions to the norm and the best ways to protect your investment portfoliogoing forward. The best long term investment strategy typically recommended in the past for average investors:allocate about 55% to stocks and 40% to bonds, with the remainder going to safe investments.Sometimes real estate or gold were thrown into the mix. For the most part, this strategy worked.For 2011 and beyond it's time to think twice about asset allocation and your specific investmentoptions in the five areas mentioned above. Some are skating on thin ice; while others are headedwhere few of today's investors have ever been before. The good news is that average investors can put together an investment strategy best suited tothe new economic reality by simply investing in mutual funds. All five of the above investmentoptions and more are available in funds. Plus, funds come complete with professional moneymanagement and plenty of flexibility. Once you're with one of best fund companies you can easilymake changes to your portfolio free of charge. So, let's take a look at some of the exceptions tothe norm or extremes that exist today. Then, we'll suggest changes to consider for 2011 andbeyond in terms of mutual funds, starting with safe investments and ending with gold. Safe investments pay interest and don't fluctuate in value. The best in class here for mostinvestors is still money market funds, where the interest you earn automatically changes withinterest rates. Thirty years ago interest rates peaked and have since basically been falling. Then,you could earn close to 20% with high liquidity and safety in a money fund. As 2011 unfolds you'relooking at more like.1%. Both of these rates represent DRAMATIC extremes or exceptions to thenorm. Few of today's average investors have experienced a significant upward trend in interestrates. Prepare for this possibility. Your best investment strategy here is to keep 10% to 20% inmoney funds. In pondering your best investment strategy with bond funds picture yourself skating on thin ice.That's what people who loaded up on bond funds to get higher interest income for 2011 and futureyears are doing. Lighten up here in general and avoid or get rid of long-term bond funds. They payhigher dividend yields (interest) but will take a major hit when interest rates head north for real.The extreme situation here has been bond prices, which became very high as a result of investorsbidding up prices in a bizarre low-interest-rate environment. The best investment options here formost folks are short-term and intermediate-term bond funds. You will make less interest incomevs. long-term funds, but you will have much less exposure to losses if the ice cracks and bondprices tumble.
 The financial crisis and recession are officially over, but the stock market hesitates in its attempt toreach new highs for 2011 and beyond. Economic growth has been in question as unemploymentstubbornly remains at high levels relative to the norm. This situation is unusual for an economicrecovery; but don't speculate about the future of stocks and don't avoid stock funds. The bestinvestment strategy here is to favor general diversified stock funds that invest in high quality,dividend-paying U.S. companies vs. smaller less-stable companies that pay little in the way ofdividends. Then diversify even further with international funds to spread out your risk. In this wayyou will participate if stocks continue to struggle upward, but you shouldn't get hammered tooseverally if they don't. Your best stock strategy if you lean to the conservative side is to lighten upon diversified stock funds in general. As a financial planner I often recommended both gold funds and real estate funds to averageinvestors, even when traditional investment strategy all but ignored these investment options. Bothof these funds add additional diversification and balance to a portfolio. Both have also experiencedchanges in character in recent times that deviates from past norms. For years real estate fundswere steady performers and paid handsome dividends. They were clobbered in the recentfinancial crisis and recession. Even with a 4 ½ % mortgage rate the real estate sector lacksgusto in turning around, but at least realty prices are not excessively high. The best investmentstrategy here if you believe the industry will recover in 2011 or beyond: put 5% to 10% in a realestate fund to further diversify your portfolio. Now let's talk about the last extreme in today's investment scene, precious metals. If you think thattoday's infatuation with gold is normal, here are some historical lows and highs for an ounce ofgold, in round numbers, you should look at. From a low of $100 in 1976... to a high of $850 in1980... and then down to $250 in 2001. Since 2001 began, gold has glittered, with its pricepushing through $1400 in December of 2010. In that same time period stocks struggled. Don'tpush your luck in 2011 and beyond. Gold and gold funds are not a growth investment and areanything but safe at today's prices. Your best investment strategy is to cut back if you have moneyhere, and to stay away if you don't. Gold has become a speculation vs. a traditional hedge againstinflation, which is presently mild by any standard. Getting more aggressive is sometimes the best investment strategy... like when prices are hittingextreme LOWS in the investment markets. For 2011 and beyond it's best to focus on the extremesthat could spell trouble in the future as they unfold... like extremely low interest rates suddenlyclimbing significantly. Protect your investment portfolio with a good defense, diversify across theboard to deal with uncertainty, and live to invest more aggressively another day. Author James Leitz teaches investment basics, stocks, bonds, mutual funds, investing and how toinvest in his investing guide for beginners called INVEST INFORMED. Put Jim's 40 years ofinvesting experience to work for you and learn how to invest at http://www.investinformed.comtoday.  

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