Investing In 2010: Strategies to Apply?

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Having survived the month of March of 2009, investors have seen as the market had a 60% rally creating a dilemma in their decisions. What will make the best investment for 2010?. Will we have to buy the stock and mutual funds best performers last year, expecting them to behave the same way, or does it really have to sell all of the inevitable correction?. The answer is no. Many financial experts expect a market correction this year, but is unlikely to take the time to sell everything and buy in order to gain an advantage in the market. What I recommend is to build a balanced portfolio with good exposure to stocks with great potential and stable dividend policy but with growth. Needless to say, that has good earnings and have virtually no debt. Anyway, whatever you want to take extreme care not to fall into the temptation to watch the winners of last year, stocks and bonds of low quality, as the best investments for 2010.

The look on the market today is known as the "new normal", which was invented by Bill Gross (Pimco) and Mohamed El-Erian of Pacific Investment Management Co. This assignment is to refer to weak global economy continues to grow that leverage the world stops and governments continue to regulate on what is already regulated. If the model from the great market advance that began in 1982 took very low interest rates, with increases in asset prices and nominal GDP growth of 6%, then Bill Gross "new normal" anticipates U.S. GDP in the range of 1 to 2 percent and a sluggish stock market, reflecting the lower global growth. As a result El-Erian recommended that investors are not exposed as much as 60%, but try to stay between 30 and 54 percent at most. Half of that El-Erian believes that going to come from outside the United States. A professor at the University of Pennsylvania named Mauro Guillen said something very interesting about this subject: "If we believe that the stock market will grow just as the GDP, we need to know that at least 10 or 5 years the American market will comings and goings. "

Actions

Forward if you are believers or not, what I can say is that the "blue chips" are going to provide excellent opportunities in 2010. They have to buy shares of good quality, stable cash flow and little debt because of how the market is right now. You can buy a fund that represents a lot of these companies like Jensen Portfolio (JENSX) or may increase your bet by buying a low cost funds like the Vanguard Total Stock Market Index Fund (VTSMX).

One of the things that agree most observers in 2010 is that: foreign bonds would perform better than the Americans. Mauro Guillen should have the third part of our capital investment companies and foreign bonds glimpse prosperity in the next 5 or 10 years. Some of the international stock funds with good projections for the future include Oakmark International (OAKIX), Janus Overseas (JAOSX) and Vanguard International Growth (VWIGX). All gained more than 80% over a period of 10 years.

The tactic is to combine measures of quality American companies and multinational companies based in the United States with large incomes from abroad. To carry out this strategy can begin by analyzing the ETF called iShares S% P 100 Index (OEF). The Jensen portfolio generates the same exposure. The co-manager of Jensen Portfolio Robert McIver said on Bloomberg on the migration of this type of action toward its bottom due to the weak dollar and changes in corporate strategies. McIver also commented that foreign companies increased 33% over two years ago and 50% today.

If the slow growth theory is tested with certainty, stocks with good dividend payments would have to perform in a good way for 2010. One lesson least appreciated the "Equities Investments" is the value consists of dividend income. In the stock market 50% of the returns of investors historically come from dividends. Here I leave you two ways to buy stocks that pay good dividends: Vanguard Equity Income Fund (VEIPX) with a dividend policy of 2.5% and the SPDR S & P Dividend ETF (SDY) with a dividend policy of 4.02%.

Bonds

The interest on U.S. bonds did not return to higher levels, which is telling us that we must pay close attention. So should bond investors to the high quality Adere mailbox funds and bonds that it can sustain. They will not gain much as the long-term bonds if interest rates continue to fall, but lose much less if rates begin to rise. Study and analyze the fund called Vanguard Short Term Bond Index (VBISX) containing a mix of government and corporate bonds. This fund has 90% market their peers in the last 15 years.

If you do not want to buy anything from the U.S. government can buy an ETF that contains Treasury Inflation Protected Securities such as the iShares Barclays TIPS ETF Bonds (TIP). To protect our portfolio further declines in the dollar can be considered a foreign bond ETF like the iShares S & P / Citi 1 to 3 years International Treasury Bond ETF (ISHG).

Commodities

Inflation is holding for now at acceptable levels, but if the economy continues to grow little by little it is likely that commodities will also begin to take effect. Since the commodities began to increase its value decided that at least 5% of our portfolio to be invested in commodities. One of the first ideas to them is PowerShares DB Commodity Index ETF (DBC) and Credit Suisse Commodity Return Strategy Fund (CRSOX). Either of these two funds in behavior reflects the prices of commodities, whether investing in shares of companies that sell or distribute commodities. Historically, commodities were a good way to diversify since the movement in commodity stocks tended to be more correlated with the immensity of the Stock Exchange