In light of all this uncertainty, we urge you to be extremely CAUTIOUS and CONSERVATIVE with your investments right now.
- Keep some cash on the sidelines until there is more certainty. There is a lot of economic data coming out in the next week or so. This is sure to create a lot of volatility in the markets.
- Look for high yield stocks that are selling for cheap. Companies with strong dividends will perform better in this environment (and pay you interest on your money in the meantime).
- Invest in gold. You can do this by either buying shares of the SPDR Gold Trust ETF (Symbol: GLD) or by buying shares of a strong miner. The GLD option would be the most conservative choice.
- Minimize bond holdings in your portfolio. Bonds yields are absurdly low. IBM recently sold $1.5 billion of 3 year bonds with 1% interest. That makes no sense! These people are getting paid little to nothing to hold these bonds, which do have a certain amount of risk. This purchase is only sensible if you think bonds will keep rallying. This may be possible short-term, but the rally will stop sooner or later.