Will gold continue to rise in price? Is the yellow metal the new U.S. Treasury bill, a new world safety net? Will oil prices rise? Is China going to keep growing, even at a slower pace? India? Will increased taxes act as a damper on U.S. economic growth?
Here’s what I know:
- Good companies with good products – whether in the U.S. or overseas – will continue to earn profits, and the stock prices of those companies, on balance, will rise.
- Good mutual fund managers will continue to assemble good investments, and the shares of such funds will, on balance, continue to grow.
- Good exchange-traded funds strategists will package worthwhile investments, and, on balance, they will grow.
- Flexible funds and eventually exchange-traded funds may lead the pack because they can go to gold, oil, small-cap value, emerging market debt, or mix and match as conditions require.
- Each of us can be good investors and probably great investors. Being a good investor is a very good thing. May I suggest you read Clark Winter’s 2008 book “The Either/Or Investor“?You can probably find one for a few bucks online at the websites for Barnes & Noble, Borders, Amazon or Books-a-Million. Let Mr. Winter tell you the difference between great and good.
Do a good deed this week, something unexpectedly kind for which you would think no reward is possible, and have a great week.
Check out more blog entries from Richard Hoe.