| Don't go overboard chasing today's best | | | | investments, at least in part due to a falling dollar. |
| investment. In 2009 stocks and gold were at the | | | | Investors were relieved when it appeared that |
| top of the hit parade. In 2010 they may not even | | | | the worst of the financial crisis was over, so they |
| be good investments. In your search for the best | | | | took cheap dollars and bought riskier investments |
| investment stand back and take a good look at | | | | pushing the stock market and gold prices higher. |
| the landscape. Soon it's likely to change so pay | | | | After all, the safest investment in the world (the |
| attention, especially if you are a new investor. | | | | U.S. T-bill) was paying much less than 1%. |
| When 2009 began your best investment might | | | | It is unusual when the stock market goes up |
| have taken the form of doing all you could to | | | | over 50% in a matter of months; and unusual |
| keep your job and mortgage afloat. In March the | | | | when gold soars at the same time. It is also |
| stock market ignited and skyrocketed 60% in a | | | | unlikely, in my opinion that both trends continue |
| matter of months. And once again gold was being | | | | throughout next year. Stocks could be derailed by |
| touted as the world's best investment. | | | | rising interest rates, a weaker than anticipated |
| As a new year approaches investors need to | | | | economy, lower corporate profits and/or a |
| reflect on the past when looking forward; and | | | | relapse of financial crisis. |
| especially the new investor needs to ask | | | | Gold is being advertised as the best investment in |
| questions. Why were stocks and gold such good | | | | the world, again. The new investor might not |
| investments? Will the trends continue, and what | | | | realize it, but this has happened more than a |
| could happen that might turn things around? The | | | | couple of times since the early 1970's. The |
| year 2009 was unique. | | | | upward trend in this precious metal has never had |
| Money was cheap and the dollar weakened | | | | staying power. A stronger economy and dollar |
| significantly vs. other major currencies. Investors | | | | could take the floor out from under all that |
| couldn't earn significant interest on safe | | | | glitters. |
| investments. Profits were enhanced for major | | | | One thing won't change next year. Your best |
| U.S. corporations doing business abroad as | | | | investment will be a balanced portfolio of good |
| earnings were translated from foreign currencies | | | | investments coupled with a sound investment |
| to dollars. The price of gold rose on the back of | | | | strategy. Instead of chasing this year's best |
| the weak dollar, since its price is quoted in dollars | | | | investment categories, lighten up on them... |
| per ounce. | | | | rebalance your portfolio. |
| Both gold and the stock market were good | | | | |