What is the best asset class to invest in for the foreseeable future?

Question

What is the best asset class to invest in for the foreseeable future?

Answer 1

Your professional development and education are a good investment, since your earning power is probably the most valuable asset you have.  As for financial investments, stay diversified.  No one truly knows the best asset class to invest in at any particular moment in time.

Answer 2

The way things are going at the moment, gold is suddenly back in fashion. (Just as the "Demon of Downing Street" sold off most of ours.)

Answer 3

if the future were foreseeable, the best asset class would be a lottery ticket since you'd foresee which numbers would come up.  *smirk*

Answer 4

There is not one best asset class simply because you cannot predict the future. Investing for the short term is a losing proposition in terms of risk & reward. Here's why.

Someone will tell you that energy, or oil, or even stocks are the best asset to put your money in for the short term--they could be right, but what they see is a trend that's already in place. If you opened a position based on their recommendation, your upside is limited as the trend has already been there. Your risk is bigger because this trend could reverse at any time.

I have been managing funds for investment since 1997. What I always tell my clients is to DIVERSIFY by asset class. Allocate part of your funds for fixed income investments (bankk CDs, bonds, rental property income) and for capital growth (stocks, managed forex, options/futures). This way, you have a more balanced portfolio and thus ensure future cash flow.

Hope this helps!

Jim http://homeruntrades.blogspot.com

Answer 5

http://www.youtube.com/watch?v=N6V5ym9kx...

Answer 6

"for the foreseeable future" could mean what is the best buy today for the long term or it could mean what is the best buy on any typical day in the future... The second possible meaning of your question contains a paradox because the best buy must be cheap and become expensive (i.e. make a profit). On any typical day the second question applies to both new buyers who want cheapness and previous buyers (who bought on previous typical days) who want profit. We can't have a share be both cheap and expensive (unless we assume exponential growth to infinity), so the second possible meaning to your question is a paradox.

The first meaning of your question asks, what is the best buy today for the long term? Well after a crisis of confidence (i.e. the credit crunch) it is best to be a "contrarian". I therefore think it is a good time to look at US stock markets because:-

1) The US stock market is cheap at these low levels (i.e. having sold off for a year).

2) The dollar is very cheap too and in the longer run we will see a significant rebound...

3) Companies earn money from selling products and/or services - These earnings rise with inflation so stocks are better than bonds when inflation is a risk...

If you want to chose a sector to go for rather than the whole market index - I think banks are ultracheap because sentiment is appalling towards them. A lot of the losses banks have announced are so called "write offs" or "write downs", however many of these losses will eventually be "written back" causing huge profits... Wait until mid to late July and then good luck!

Answer 7

energy seems to be one of the few that continues to have legs.  Anything that plays into inflation is also likely to have legs.  tba

Answer 8

Real estate, oil, gold, silver.  Why?  Because the U.S. dollar is tanking!  This is why gas is so high, and health care is going through the roof.  Its not that these things are becoming "more valuable" its because the dollar is losing value so it requiring more dollars to buy things.  But the best asset you could start investing in is you mind.  Educate yourself on the subject of money and investing.  As an example, in the year 1998, one ounce of gold would've cost you $300.  Today, ten years later, in order to buy that same one ounce gold coin would cost you $900!!  This means that the dollar has lost 75% of its purshasing power - 75%!!!  So get smart and ride with the tide!!!!  Later!!!