Best Investment Portfolio For 2011 and 2012
The best investment portfolio for the next 24 months, if set up properly can make you very good profits. Yes! even though we are still recovering from one of the worst financial crises the world has ever seen. For the last 10 years bond investors have done quite well, while stock funds performed poorly. But are the tides about the turn?
For many years most astute investors have been more weighted in bonds, a simple portfolio formula that has worked quite well. Especially in 2010. But that might not be the right thing to do here in 2011. Too many people have loaded up in bonds, and now as they are selling off, many investors are second thinking this might not be the best investment portfolio for them going forward.
But is the tide about to turn?
That is a good question. But leading trends in global markets are favoring many commodity investments. And they keep gaining interest amongst well known analysts. Ever since the start of 2011, higher prices have been seen in gold, oil, silver and other commodities. Especially as the inflation is now starting to rare its ugly head. This is sending bond prices down significantly. Such trends are likely to continue if inflation start to heat up more.
For the best investment portfolio in 2011 & 2012 one must expect inflation and interest rates to heat up and for bond futures to lose value. So bond are an investment vehicle to stay away from for at least the next 12 months. Although you can look at short term bond funds. But once interest rates and inflation goes up, stay well away.
Even the most astute investor can argue that interest rates and inflation have been heading lower over the last several years. That is why bond prices increased so rapidly. They were fixed by the Federal reserve and they had no real reason for investors to get scared. But eventually the printing off of money will come to an end and the fed will be forced to raise rates, as inflation come in. That will not be a good situation and by the look of things here in 2011 we are almost at that point in time.
Ensure that you are not too heavily invested in any area. Diversification is the key for a best investment portfolio in 2011 & 2012. Well balanced and diversified funds always win in the long term.
For many years most astute investors have been more weighted in bonds, a simple portfolio formula that has worked quite well. Especially in 2010. But that might not be the right thing to do here in 2011. Too many people have loaded up in bonds, and now as they are selling off, many investors are second thinking this might not be the best investment portfolio for them going forward.
But is the tide about to turn?
That is a good question. But leading trends in global markets are favoring many commodity investments. And they keep gaining interest amongst well known analysts. Ever since the start of 2011, higher prices have been seen in gold, oil, silver and other commodities. Especially as the inflation is now starting to rare its ugly head. This is sending bond prices down significantly. Such trends are likely to continue if inflation start to heat up more.
For the best investment portfolio in 2011 & 2012 one must expect inflation and interest rates to heat up and for bond futures to lose value. So bond are an investment vehicle to stay away from for at least the next 12 months. Although you can look at short term bond funds. But once interest rates and inflation goes up, stay well away.
Even the most astute investor can argue that interest rates and inflation have been heading lower over the last several years. That is why bond prices increased so rapidly. They were fixed by the Federal reserve and they had no real reason for investors to get scared. But eventually the printing off of money will come to an end and the fed will be forced to raise rates, as inflation come in. That will not be a good situation and by the look of things here in 2011 we are almost at that point in time.
Ensure that you are not too heavily invested in any area. Diversification is the key for a best investment portfolio in 2011 & 2012. Well balanced and diversified funds always win in the long term.
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