And then-
Translation-there will probably be a massive sell-off as folks diversify their investments once more. Watch the stock market closely over the next couple of years. A good rule of thumb is, once the Dow inches back above or close to the 9000 mark, that might be the best time to diversify while you still have a chance to increase your profit margins.
And incidentally, you should plan on diversifying soon. This is actually a good time to buy stocks, at least theoretically, as most of the more dependable stocks would seem to have no place to go but up. Still, take it slow for now. By the time the year is over with, there could well be more big name companies that tank, and one sudden disruption in any given number of areas could see many of them could evaporate overnight.
And by all means, buy some gold-a moderate amount. Don't imagine for one minute its going to remain at current prices, or rise even higher, and stay put. You might think you've got a pot of gold now, but if you aren't careful you could end up holding an empty bag.
Also, when buying gold, look to things like Canadian Maple Leafs, South African Kruggerands, and other such issues that remain stable in price. They don't rise in price with the gold market, but neither do they crash. Thus, they are a safe investment.
Personally, I wouldn't touch a gold fund with a ten foot pole. The current line is that gold is far undervalued since the 1980 debacle and allowing for current rates of inflation, it has a ways to go yet to catch up to its true value. That sounds reasonable, but then they try to sell you the song-and-dance that once it gets to that level it will stay there.
It will stay there until the next major sell-off, and then it will go down, maybe not as low as it has been typcically over the last three decades, but low enough that if you have a lot of money tied up in it you could lose your shirt.
Still now, for sure it is a good investment, like all things, in moderate measure.
