Diversified Investing

[mandiees]

What sectors should a person cover if they are trying to cover all the bases with regard to what investments are "hot" right now?

[David Kubica]

To truely diversify you should be looking into more than just equities in the stock market. To answer your question though, I think that water transportation (TBSI for example) are going to be REAL hot over the next 1-2 years. Water transportation companies have really been beaten up over the past year. A lot of them have P/E ratios of just 4.0. TBSI in particular is in more niche markets than the rest of its competitors making it attractive.

To truly diversify though you should look to invest in more than stocks. Having at least 10%-20% in managed futures is recommended by many professional investors. Real estate is also an obvious investment asset class. To learn more about managed futures visit www.managedfuturesdepot.com.

[clintonbaisley]

I also think that To truly diversify though you should look to invest in more than stocks. Having at least 10%-20% in managed futures is recommended by many professional investors. Real estate is also an obvious investment asset class.I completely agree with David.Follow him..
Good Luck..!!!

[ricky028]

You’ll need to allocate money among the different asset classes differently depending on your situation, despite that diversification is still important so that your investments as a whole are at lower risk.

[RayL90210]

Speaking of diversifying, have you ever considered looing into stock options?
I recently read a great book on investing and compounding and it discusses heavily on the topic of stock options as a lucrative investment method. The book is called The Power Curve and it really presented me with a lot of new ideas and concepts. What are your guys' thoughts on stock options? Did anyone else get to check out the book? If not i highly recommend you flip through the pages a little.

[barkerfinance]

I actually have read The Power Curve - the one written by Scott G Kyle. I definately agree on its use of compounding investments as an old but very left out strategy of investing. I really liked the in depth explainations of options trading as well as diversifying investments using compounding - and the analogy aspect of the book (analogies with sailing) definately make the book a must read.

[Ms_Margaret]

The best investments in the time o recession can be:
1. Precious metals: Precious metals, such as gold, silver and platinum, are a tried and true investment for those looking to get out of the stock market.
2. Timber: Timber is a solid commodity with steady demand that does well during stock market declines because it is not correlated to the market. Its returns reliably outperform the market, and its value increases over time, even without investor input.
3. Foreign currencies: As the U.S. economy weakens and the dollar continues to lose value, it makes sense for investors to consider owning blocks of foreign currency.
4. Equities in countries with low correlation to the U.S.: Investments in foreign countries whose economies aren’t tied to the U.S. economy could be helpful for investors hoping to diversify their portfolios in case of recession.
5. Real estate: Real estate can be a prime investment in times of recession. In times of financial uncertainty, real estate investors should focus on cash flow rather than appreciation.