Just because you did something last year does that mean you’d do it exactly the same this year? Probably not, conditions never stay the same and just because it wasn’t raining today last year doesn’t mean it won’t be raining today; things change and most importantly people change. If you’re not to big on change there is a general recommendation for an investment strategy that won’t be financial suicide. Invest in a 60/40 percentage, in stock and bonds respectively. Bonds are more commonly used because they are safe, there are very few people that frivolously spend their money unless they have more coming in. Not only are bonds safe but generate more income, as with anything losses in one area should be balance by gains in another.
As you do in your life on a daily, each situation needs to be looked at individually and once you have an ample amount of information decide whether you should be aggressive or defensive. But just like running after a hot girl a hot asset won’t pay off for long, because the asset like the girl will always leave you for the hotter guy. For instance, China is chasing what they believe to be a gold mine, and there stock market is reaping the rewards. Check your investment periodically and make sure that they are at a reasonable risk level for your finances. Don’t put all of your eggs in one basket, diversity is key when in investing. Just as you hear that people shouldn’t put all of their money in one bank, have a checking, savings, and a credit union.
I know than many are worried about the state of the United States economy and that is reasonable argument but if you invest smart than you can’t fail. If the economy does get a hard to bare again there are a few things you could do. Shorten the length of your bond because the increasing interest rates will result in low bond prices. So, while you’re taking a hit in the amount you can make off of it, it’s safe, so you have nothing to worry about. Put your money in stock that follows the market. Now with your left over assets, stick to cash; meaning liquid investments like savings, CDs, and money market accounts. If you stick to this it’s a fool proof way to invest, but don’t come looking for me if something doesn’t work out.