Dana H.

The Problem of Where to Invest

"We proceed at our peril."

Well, that's life. Unless you plan to kill yourself, there's no option not to proceed. There never was such a thing as a risk-free existence, and this is true more than ever, thanks to the artificially created risks due to irrational government action over the past decades (and especially over the past two years).

Unless you're a day or swing trader, or have great faith in your powers of prognostication, the rational approach is to diversify and hedge against the various risks. Keep some assets in cash, some in precious metals, some in U.S. stocks, some in international stocks, etc. Adjust the weighting of each asset class according to your best judgment of the relative risks of inflation, deflation, collapsing dollar, collapsing U.S. economy, etc.