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Stock Secret
We’ve said it before , and we’ll say it again—just because the economy is taking it on the chin is no reason to panic. While it might feel as though the bottom is dropping out and you should get out of the market, history shows that if you diversify, you can still make money on your investments.
Savvy savers know that to invest in the stock market is to be in it for the long haul. That’s why a diverse portfolio is best—after all, you don’t want all your eggs in one basket! USA Today lists the best and worst investments over the past 10 years. Real estate investment trusts were big winners last year; this year they are among the poorest performers. Commodities like cattle and wheat seem to do well over time, as do natural resources such as oil and cotton.
If you’re concerned about your money, it pays to do your homework and figure out where the returns will be greatest over the long haul. If you’re unsure about the investments you’ve made, talk to your financial adviser. [USA Today]
This is a great idea if a particular sector is facing hard times BUT if the entire market is on the slide then diversification will not help - have a look at Warren Buffett he has said it a number of times if you see a really cheap high quality stock buy everything