Keep Your Eyes on the Goal
There is statistical proof that diversification provides the best return for a portfolio. This means that a good portfolio has stocks, bonds, precious metals, real estate, and collectibles. The great thing about dollar-cost-averaging is that you purchase these items for your portfolio over a period of time no matter what the price, another key component of recessin investing. Over time, the portfolio grows, and you must be disciplined to add to your portfolio during market fluxuations. Keep these things in mind:
1. Precious metals offset inflation and irresponsible government spending. In the past six years, precious metals have had a wildly successful run up in price, and some financial gurus claim that because of the huge deficit, metal prices will continue to rise. Gold and silver can be purchased in a physical form or in Exchanged Traded Funds.
2. Real estate investments can be purchased as stock market vehicles such as ETFs or REITs, or as physical property. The recent decline in prices can be seen as a buying opportunity. Like all investments, be sure to understand when a market is overvalued, and wait for better buying opportunities.
3. Collectibles need to be worth a great deal to someone else before you should consider it as a part of a porfolio. Some good collectibles include original movie posters, antiques, rare coins, and artwork. Study these well before investing in them.
Almost anyone can invest successfully during good economic times. However, perseverance and courage to stick to a plan builds a solid financial base. Investing during tough economic times often means finding the best deals to add to your portfolio.