20 years of doing my own investing. Avid reader of Financial magazines and Barrons. Higher level of investing knowledge. Learned my investing lessons over the years. I believe in investing to mitigate risks to our money in terms of larger downside risk. Therefor I have invested to protect against dollar devaluation, and high or hyper-inflation. Those risks are much much higher today (4/2011) than they were in 2007. So to minimize these risks to your net worth AND TO YOUR PURCHASING POWER, at 35% I am heavily invested in alternative investments (those investments that should maintain or increase in value during high inflation or with dollar devaluation). Examples, gold, silver, TIPS (Vanguard Inflation Protected Securities Fund or the TIPS fund are good choices), energy & oil, and commodities including agricultural, and International stocks. These stocks wiill do better than US stocks because of exchange rates if we have a dollar devaluation. 15% in silver and among all alternative investments as things get worse I will increase my alternative investments allocation and will add guaranteed (for principal but not to exchange rate) cd's invested in a strong basket of foreign currencies through Everbank (www.everbank.com)
And remember a good stock fund is easier to pick than a stock, easier to monitor. Do not have over 2% of your investing assets of all types in any one stock!!!!! This has killed many investor due to stock specific risk (Enron, Level 3 etc).
David Dierking is an analyst and writer focusing primarily on ETFs, mutual funds, dividend income strategies and retirement planning. He is a current contributor for Seeking Alpha, ETF Daily News, MutualFunds.com and ETFdb.com. He was also included in the panel for ETFReference.com’s “101 ETF Investing Tips from the Experts”.
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