Sunday, August 03, 2008

BEST INVESTMENT in NEXT FIVE YEARS


The Worst and Best Investments for the Next 5 Years ...

By: Money and Markets

Lets Skip Worst Investment, only best it for next 5 years

Now, let's move on to my list of what I think are the best investments for the next five years ...

Best Investment #1: Gold!

There's no doubt in my mind: If you want to preserve the purchasing power of your dollars and make some healthy profits above and beyond the rate of inflation, by far the best investment of all is pure, honest, real money that has stood the test of time for more than 6,000 years — gold!

Gold is real money, and cannot be created or destroyed by any politician.

Gold has always preserved its purchasing power. And today, more than ever before ...

You need an asset that cannot be manipulated by the powers that be ... that has no politician to answer to ... no board of directors to dilute it by issuing stock and stock options ... and no gimmicky accounting to establish its fair market value.

Also not to be ignored: Platinum, palladium and even rare metals, such as rhodium and cobalt, which I will cover in my upcoming issue of Real Wealth Report.

Best Investment #2: Energy

Not just crude oil and gas, but also alternative energy.

Right now, the price of crude oil is pulling back in a normal, healthy retracement. I expect oil to trade as low as $107 a barrel. But then, Phase II of its bull market will kick off, sending the price as high as $200 a barrel. A gallon of unleaded gas will ultimately hit $5, perhaps even $6.

Oil & gas companies, once the current oil pullback has run its course, will be awesome buys. Many of them are trading at price-to-earnings ratios of less than 10, when they should be trading at double that.

Alternative energy plays in solar, ocean motion, nuclear energy, and wind are also great longer-term investments. But as with oil and gas, wait for my signals!

Best Investment #3: Natural Resources

In this category I group all other natural resources including agricultural commodities, soft commodities such as coffee, cocoa and sugar, base metals such as aluminum, copper, nickel and zinc, fertilizers, and last, but not least, water.

All are assets where supplies are limited, and where demand (largely due to Asia's growth) continues to grow at a rapid pace.

All are tangible assets with intrinsic value, and where real wealth is accumulated.

Best Investment #4: Economies that are driving demand for natural resources higher.

Reason: They are the economies that are also largely driving global economic growth these days. Countries like India and China. Indonesia and Malaysia. And more!


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