Avoiding a 2008-Style Wipeout - 26 April 2011

"Diversification" may not be enough...

THE STOCK MARKET crash of 2008 was a real eye-opener to investors, writes Dr. Steve Sjuggerud in his Daily Wealth email.

Before 2008, people thought "diversification" equaled "safety." Investors thought that, by spreading their eggs around, they couldn't get hurt too badly. So they got diversified across a wide range of stocks, bonds, commodities, and real estate.

The lesson was brutal – everything went down. A lot. Diversification, as most people thought of it, simply didn't work.

A few things (that most people didn't own) actually performed just fine... Some simple currency strategies made money. Gold went up a bit. Tax-lien certificates that I recommended chugged along just fine. And guaranteed investments (like MarketSafe CDs from EverBank) of course didn't lose you any money.

Could we see another crash like 2008, where just about everything goes down? It's in the realm of possibility...

Stocks have doubled from their lows two years ago. Oil is up over $100 a barrel again. Silver is up hundreds of percent. Things are up. A lot. So a bear market in just about everything – like 2008 – is certainly possible.

Learn the lesson from 2008... Don't think you're diversified because you own stocks, bonds, and commodities.

Instead, add strategies to your investments that won't get clobbered when everything else does... safe currency strategies, tax-lien certificates, guaranteed investments, and others that shouldn't get hurt if we see a 2008-style fall.

You will have to read up on these unique investments... Chances are, most people you know won't know a darn thing about them.

But it'll be worth it. You'll avoid the pitfalls and maximize the opportunities. Get to it...

Want to add a physical Gold Investment to your portfolio?...