Which Sector to Invest In Right Now?

[Grep]

Ziggy, I agree that's better.

[crazy connie]

Commodities have been beaten down a lot and when the rebound comes they will rebound quickly. This is just my opinion and I would only do this via an ETF. Once they are up substantially (probably 12 to 24 months) then it would be time to move back into mid/large cap companies.

[2soon2tell]

If this is speculative type money and a small part of your overall portfolio take a look at GDX. The gold miner's index is leveraged to the price of gold bullion. Gold should benefit even more in the years ahead as inflation rears its ugly head.

[Running_Man]

Actually I would be selling gold as it's increase has been too great based on fear and i think the market is coming in for a very good rally over the next months. Assuming one does not want to buy individual stocks I would just buy the S&P500 index, some of the larger stocks have been beaten down so much any good size rally will show up there.

Any day where JPMorgan can cut dividend 87 percent and the stock rise, consumer confidence set an all-time low and housing prices decline a record amount and still stock market rises tells me the fall is most likely done for a few months. A whole lot of weak hands have been winnowed out.

[OhSoClose]

Thanks everyone for your thoughts.

Interestingly, we already own a big chunk of Vanguard Total Stock Market Index. I know someone also mentioned the idea of buying into a financial sector fund, but DW didn't want to buy more of the Vanguard stock index fund precisely because it includes financial stocks! (yeah, some emotion here). We also own a big chunk of the Vanguard Inflation Protected Securities Fund.

And we owned some Vanguard High Yield Corporate until about two years ago when we sold it all. Becoming an equity holder through buying bonds. That is funny and sad.

We will be thinking about some of the other suggestions (energy, commodities, staples, gold, guns, ammo, and alcohol). At the end of the day, I think uncertainty and a prevailing conservative attitude will cause us to put the cash in a CD or maybe a AAA intermediate muni bond fund. Lol.

Thanks again.