Investing in 2009

Investing in 2009 Friday, January 2, 2009

Posted by ei-forum in Investing.
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invest2009 Many feel that we saw the worst of it in 2008 and that 2009 will be better but we somehow feel uneasy about this confidence…

We are still of the opinion that 2009 will be a volatile year as things settle and as the markets try and pave the way for a recovery. If 2008 was a year filled with horrible financial news, we think that 2009 will be a year filled with horrible economic news – the pain and suffering will shift to the real economy.

How are investors supposed to deal with this and how should they tackle their investments in 2009? Well, as we having be saying, with extreme prudence. We are not sure about the timing but we are fairly confident that we will see the markets rally and fall 20-30% but have no idea on what the sequence will be!

In the midst of all this uncertainty the need to have a long-term plan and a well balanced portfolio is crucial. Naturally, all depends on your own objectives and financial condition but this could really be the time to pick-up some bargain stocks and construct the portfolio of a lifetime! Be sure to have your shopping list ready and use what will probably be violent market swings to open positions not only in tradition value blue chip companies but also in small caps, gaining exposure to emerging markets and commodities. Remember, you need to have a plan and be ready to execute your planned strategy without fearing market moods – just stick to your plan!