Lux Investing

Where should you invest in 2007 Large caps Small Caps or International?

Public Comments

1. Best thing is to diversify: 40% international, 40% small cap, 20% large cap. International markets will see the major boom, no doubt.
2. In general I agree with the first reponder. Diversify. However, I think that about 50% should be large cap stocks. They are dirt cheap right now and they are certainly the best values. I also like international, especially China and India. Small cap have outperformed large cap for the last 6 years. It might be time for the situation to reverse, but then again maybe not. Good small cap plays are Royce funds and IWN.
3. 10% tech 10% utilities 10% energy 10% Europe 30% Latin America 30% Asia Projected annual gain: 25% with dividends
4. I would go 50% large caps, 30% small caps and 20% international. My reasoning is this: Never bet against the big caps. They always make money in the end, bull or bear markets. The flight to safety in bear markets will be to big caps, not small caps or international. Small caps are great because some of them eventually become big caps. They grow earnings and do great things. Small caps have outperformed big caps like 7 years straight. International stocks are a good hedge against the dollar. Try China Mobile (CHL) for a good one.