You've heard various versions of "the three greatest lies in the world," all beginning with "The check is in the maiL" Heres my updated version: Emerging markets aren't tied to the U.S. Commodities are a new asset class. An AAA rating means no risk to your principal. This has been a year most of us would like to forget. I made the horrific mistake of looking for a bottom in the housing market and in consumer spending way too soon. Fannie Mae and Freddie Mac were nationalized, wiping out not only their common stock but their preferred as well. In the ultimate irony, neither agency has yet borrowed a dollar from the Treasury.rnIt is tempting to play ostrich and stick one's head in the sand. However, rolling over short-term Treasurys that yield 1% preserves capital in nominal terms but almost certainly not in real terms, against inflation. The best advice I can give you is to choose an allocation whose level of risk and opportunity you can live with, stick to it and rebalance it once a month.
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