Partners - Winter 2008 - (Page 13)

investment corner Where to Invest in 2008 By Stuart Ng, CFP® Last year brought us both good and bad in investing. The good: The Dow hit an all-time high, and the economy grew (as measured by Gross Domestic Product or GDP). The bad: Subprime mortgage defaults, oil prices spiked and the dollar lost value against foreign currencies. So, where does that leave us in 2008? We hear it over and over again, but the old adage of investing still rings true — diversify. But what does that mean to you as an investor? It means creating a diversified portfolio of investments — whether in your 401(k), your IRA or a brokerage account — between particular markets like stocks, or assets like real estate. We diversify in hopes of enjoying the gains of certain investments, while at the same time protecting against big downturns in any one singular investment. In other words, if U.S. stocks are going up, are U.S. bonds going down and vice versa? Often, the answer is yes. Therefore, if you own both of these types of investments, if one investment drops in value the other may be able to help protect the value of your overall investment portfolio. Now, if you happen to add into the fold foreign stocks, emerging market stocks (think China, India and Brazil) and foreign bonds, then you are adding more diversification that may help protect your wealth yet, at the same time, take advantage of some areas of growth that a simple U.S. stock and bond portfolio can’t necessarily provide you. As other regions of the world experience a growth rate far beyond our own (China’s economy is expected to grow about 10 percent in 2007, while the U.S. economy is expected to grow about 2 percent), seeking diversification beyond our own borders may, in fact, help to grow your money as well as help protect it in the event that the U.S. economy goes through a recession. In short, diversification goes back to another old adage: “Don’t put all your eggs in one basket.” Seemingly simplistic, but important in growing and maintaining your personal wealth. This article is not intended to provide specific investment or tax advice for any individual. Securities and insurance offered through Linsco/Private Ledger Corporation. Member FINRA/SIPC. Not NCUA Insured. No Credit Union Guarantee. May Lose Value. International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. Let Partners Wealth Management help you plan for your future. Call (800) 948-6677, option 6, to schedule a no-obligation meeting. Stuart Ng, CFP®, is a Senior Wealth Advisor with Partners Wealth Management. WINTER 08 13

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Partners - Winter 2008 Contents Member News What's Next? Motley Fool: A Tale of Two Borrowers Jean Chatzky: Extreme Jobs Investment Corner On Your Side Member Education

Partners - Winter 2008

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