As I look around and see friends and family losing their retirement, I grow upset and frustrated. I feel helpless in the fact that individuals close to me can no longer retire or have had a significant amount of their hard earned life savings slip away from them. The biggest reason seems to be they trusted their money with a broker who does not keep up with todays ever changing market and keep their money in what has worked when the market was different.

One of the biggest things to remember is you have not lost your money unless you close down your investment. The financial experts have always stated through time that one should buy low and sell high. This makes complete financial sense. However what the experts did not state was that when the market went low that the investor who already had funds in an investment must be able to bare with the market and have patience and fortitude not to panic. This is extremely difficult to do. It is also extremely difficult to purchase an investment when markets are not doing well on a whole.

How then can one buy low and sell high; when the situation happens to get into it?

First one must ensure not to panic or look for so called investments just anywhere. Many are scammed when they are desperate looking for a miracle. If the so called investment or program seems too good to be true, it most likely is. Do your research and check for legitimacy. Just because a business is in good standing does not mean it is a legitimate business. Always check for references and if someone refuses to talk to you or does not return emails at all, do not do business with them.

This author personally likes the idea of investing 25%-50% of ones total portfolio (depending on the market and personal risk level) in gold and silver. There are many reasons for this and many ways to do this which can be discussed in an article on its own. When purchasing the precious metals, ensure you look at the charts to find when it may be at its lowest for the year. If one had gotten into gold when it hit $1,000 as many did, one would have lost money short term. However if one had done their research and waited until it retraced back until the $700 range and then purchased it, they would have made money on the investment already.

One should also purchase stock in companies in which do not hold "toxic debt" as is rampant in todays market. If a company is only around due to a bailout then chances are that it did not fix the problems causing it to go under in the first place.

One should also look at diversification of a portfolio into other markets such as forex and futures. There are so many companies and managers who invest in this. However in my experience, most do subpar and I am extremely surprised that they are still in business as they have high levels of a minimum investment yet show to be extremely risky. There is only one organization I know of who has a unique money management system who has an average of 26% per month return and is extremely conservative in their system whereas one can profit when only winning 48% of trades. It is quite impressive and it is an investment I have appreciated for the past year plus. The reason an investment such as this is so positive is due to being able to profit from the market wheather it goes up or down each day from moment to moment.

It is also possible to trade the S and P 500 without having to purchase stocks, bonds, etc on it using the same methods as described above.

Other investments are finding organizations who pool together money in order to purchase bank instruments at a discount. While typically purchasing "toxic debts" such as this are not advisable, the instrument is being sold within a couple hours and never held onto long term. The principal can also be insured and profits are significant enough to take the risk, though very minimal.

Based on current realities, below are a list of what I believe to be major investments and my thoughts on them.

U.S. Stocks

I believe that in general U.S. equities remain substantially over-valued, and that despite nominal new highs for some popular stock market averages, they remain in long-term secular bear markets when adjusted for inflation. As such we are bearish on the broad U.S. stock market, and only find value in certain carefully selected U.S. equities, generally those companies that are export oriented and/or commodities based, including mining and oil and gas.

U.S. Bonds

I believe that the U.S. bond market is in the process of forming a significant top, in what has been a major long-term bull market. Once completed, we expect bond prices to collapse. Given the highly unfavorable long-term risk reward situation, we recommend that investors maintain minimum exposure to any long-term debt instruments, be they treasury, municipal, or corporate. Those holding U.S. dollar denominated debt instruments should restrict ownership to only the highest quality, short-term maturities. Even those high income investors seeking tax-favored yields are cautioned that avoiding the inflation tax, which stealthily confiscates principal, is more important than avoiding taxes on mere income.

U.S. Residential Real Estate

If it looks like a bubble, walks like a bubble, and quacks like a bubble, it's a bubble. The combination of artificially low interest rates, foreign central bank intervention, an irresponsible Fed, excessive credit availability, the proliferation of low or no-down payment, adjustable-rate, interest-only, and negative-amortization mortgages, a can't-lose attitude among speculators, validated by ever rising "comps," the complete abandonment of lending standards, wide-spread corruption in the appraisal industry, rampant fraud among sub-prime lenders, and the moral hazards associated with loan originators re-selling loans to buyers of securitized products who perceive minimal risk and an implied government guarantee, has produced the "mother of all bubbles." When it finally bursts, it's not just real estate speculators and home owners who will suffer, but the entire U.S. economy, its banking and financial systems, and anyone with U.S. dollar denominated savings.

The U.S. Dollar

I believe the U.S. dollar is in a major long-term bear market, and as such recommend keeping exposure to the dollar at an absolute minimum. All long-term savings and investments should be denominated in select foreign currencies against which we believe the dollar is likely to fare the worst.

Gold

I believe that Gold is in the early stages of a new, secular bull market. Conservative investors are advised to have a portion of their savings allocated to physical bullion, while speculative investors are advised to own shares of carefully selected mining companies, both domestic and international.

Commodities

Like gold, we believe that commodities in general are in the early stages of a new bull market, and that conservative and aggressive investors should seek out appropriate ways to gain exposure to this sector.

Foreign Stocks

I believe that unique opportunities exist in many carefully selected foreign equities, particularly those that have minimal exposure to the United States, and are in no way related to U.S consumers, financial services, or technology. Many foreign markets are counter-cyclical to the U.S., and have recently emerged from long-term bear markets. In many cases valuations are low, yields are high, and prospects for earnings growth are favorable.

Foreign Bonds

Given my bearish outlook for the dollar, bond investors should concentrate their holdings in instruments denominated in select foreign currencies. However, given our global outlook for higher interest rates and rising inflation, shorter maturities are preferable. However, given current U.S. tax law, we believe that those seeking conservative, income generating investments should concentrate on high dividend paying, carefully selected foreign property stocks, utilities, energy trusts, and natural resource based companies.

When I see many losing money, I give thanks that my portfolio has stayed steady throughout. I am not saying all my investments are good and I have never lost money. What I can say is I am blessed enough to be able to continue to do the research and keep up on the worlds markets enough to keep investments steady when the market is good as when it is bad.

Do not be afraid to question your broker on certain investments. Remember they work for you. Perhaps some of your questions may help them in their financial decisions which may in turn help others.

Stay educated, stay positive, and stay strong (with financial indpendence) and you too will do fine.