A Brief Look Back...and Then Forward

I constantly receive requests from readers wanting to know more specifics about what I do. They are talking about my investments. Apparently, they have the uneducated belief I know something they don't from having been in this business for the past 953 years. Nothing could be further from the truth. I have always taken the basic tip from the financial gurus that asset allocation is vital and so my portfolio has a mix of stocks, bonds, real estate, and precious metals. And I rarely, if ever, do I speculate. I don't look to take too much risk but believe in having a solid foundation on which to build. Kind of like the tortoise and the hare. And, notwithstanding having a Type A personality, I still move rather slowly when it comes to investments.

In any event, we all remember that at this time last year, the experts were saying that it would be a solid year for stocks. The truth is that 2005 revealed stocks and bonds producing returns below the norms. In fact, the S&P 500 gained 5.58 percent, which may be considered okay to some, but disappointing to others.