Posted At : March 1, 2010 10:17 AM
Given what we know about the economy, investors must be nimble and essentially pray for peace but prepare for war. The impending crises could take months to develop or begin tomorrow, so investors must walk a fine line: Take what the market gives you when it gives it to you but also protect yourself from the future inevitable catastrophe. At some point this bubble is going to burst and the pain could be worse than last time.
Unfortunately, investors can’t sit in cash or CDs for long either, as they are guaranteed to lose purchasing power. One must find the right strategy that participates in the ups but protects in the downs. It is essential that investors have an active portfolio that gets the very best return with the least amount of risk possible and also one that actively adapts to changing conditions.
Regards – Keith Springer
Author of Facing Goliath