We ask two top financial planners to give us one idea each for the average investor.
Ivory Johnson, Scarborough Capital Management:
As inflation comes into the picture, Canada looks attractive because they have gold mines and a lot of commodities. Canada is the seventh largest oil producing nation and third largest gold mining country. In an inflationary environment, any asset you can touch will hold its value.
Doug Lockwood, Harbor Lights Financial Group:
Look into emerging markets. Two positions to consider are Oppenheimer Developing Markets (ODVYX) or ishares MSCI Emerging Markets (EEM). This is a way to play the international stock space using the emerging nations and their stocks. This sector is off to a great start in 2009. As the world begins to thaw and come out of this deep recession, this sector should lead the way. It is aggressive, though, so keep exposure to a small percentage of your total allocation – think 5 to 7 percent max.