Best Investment Strategy for 2008 is to buy low and sell high! It has been tried and tested and proved to be a successful strategy for Warren Buffet and other immensely successful investors.

Best strategy is to Diversify your portfolio to include, Banks, Insurance, HealthCare, Technology, Telecomm, Bio-Technology and Raw Materials. Done 7 sectors and choose their leaders..

Anybody have other thoughts on this or any other ideas?

Abax,

We really can't argue with that strategy..It seems so obvious and most investors are totally clueless on establishing a consistent strategy for investment.

But, in practice, how does one really know what the low or bottom is for the market in general? Also, what happens if the market deterioates further, do you sell your position at a loss?

I like your 7 sectors though, however I would have included Oil or Gas sector in place of Banks.

Abax,

A timely post considering how poorly the stock market is doing! I have really had to sell postions to offset some capital gains generated from stock sales in early part of 2007.

But, your strategy needs to include "No margin" positions! I strongly recommend that nobody buy on margin, it is a long term recipe for Disaster!!

Folks,

The Stock market is extremely volatile and there is tremendous uncertainty as to the extent of the tax cuts that Congress and the President are envisaging. Also, global markets are melting and people are pulling out of the market..

I think Cash in bank CD's are best..provided the banks are going to be safe!

Does anybody know how much FDIC Insurance protection does one have in the Banks per account?

Sarah,

Don't panic! This is a correction and soon the market will become stable. It has
alway been said by experts that one should only "invest for long term" using a diverisified strategy. If you own a few mutual funds and they are well diversified you should be fine long term..

Cash in bank is good if you cannot take the risk of market fluctuations. But, I am sure there are some excellant members in this website who have a great insight into the market better than me, I would also like to hear from other members.

The Stock market is extremely volatile and there is tremendous uncertainty as to the extent of the tax cuts that Congress and the President are envisaging. Also, global markets are melting and people are pulling out of the market..

FDIC insures $100,000 per account I believe in case of the financial institution collapses.

I think when it comes to the stock market, irrespective of the volatility, I would keep a 10 year investment horizon! In other words, think very hard before buying a stock and when you do, don't PANIC and sell on the spot! Take the emotion out of the equation.

How do yo pick the stocks? Try and choose a sector that you think meets your criteria and is within the realm of your understanding. Pick industries that you have some knowledge of trends, you will do much better in the long term. Furthermore, pick leaders in the sector that you choose.

Try and identify new technologies coming to the market, ie I like the Solar Technology and Virtualization Sector! These are really good sectors that will bring in fantastic growth that will allow lots of room for more competition. Take the case of VMW Inc, a new player to the market..It looks like the Microsoft or Google of this sector. Try and do research on this sector and determine if the company meets your criteria!

But, never engage in day trading or margin buying! As it brings nothing but grief always! This way there is no reason to panic..

Also, another idea is to nimble into Real Estate! I think this market is badly beaten and recovery should occur towards end of this year!