2007-01-12 08:39:03 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
In general I agree with the first reponder. Diversify. However, I think that about 50% should be large cap stocks. They are dirt cheap right now and they are certainly the best values. I also like international, especially China and India. Small cap have outperformed large cap for the last 6 years. It might be time for the situation to reverse, but then again maybe not. Good small cap plays are Royce funds and IWN.
2007-01-12 09:22:16 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I would go 50% large caps, 30% small caps and 20% international. My reasoning is this:
Never bet against the big caps. They always make money in the end, bull or bear markets. The flight to safety in bear markets will be to big caps, not small caps or international.
Small caps are great because some of them eventually become big caps. They grow earnings and do great things. Small caps have outperformed big caps like 7 years straight.
International stocks are a good hedge against the dollar. Try China Mobile (CHL) for a good one.
2007-01-12 11:12:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Best thing is to diversify: 40% international, 40% small cap, 20% large cap. International markets will see the major boom, no doubt.
2007-01-12 09:06:34 · answer #3 · answered by Freddy 2 · 0⤊ 0⤋
i experience interior the "do not placed your eggs all in a unmarried basket". I actual have an S&P Index fund. I have a international fund (the U. S. marketplace should be down and over seas should be doing extra ideal) The S&P is made from 500 tremendous Cap companies. yet I have a fund with medium-small agencies. at times small agencies would out carry out. that is in simple terms my mindset.
2016-11-23 14:40:01 · answer #4 · answered by ? 4 · 0⤊ 0⤋
10% tech
10% utilities
10% energy
10% Europe
30% Latin America
30% Asia
Projected annual gain: 25% with dividends
2007-01-12 11:02:34 · answer #5 · answered by gregory_dittman 7 · 0⤊ 0⤋