Investment Theme For 2008

 

·        International Equity Exposure (45%)
As the value of U.S. dallar continue sliding, it is necessary to maintain high international equity composition in the portfolio to hedge against U.S. currency devalue.

·        Foreign Bond (10%)
Buying an international bond fund also maybe a good idea as an extra protection just in case next year is a bad year for the world economy.  As U.S. government budget soaring and huge trade deficit continues, The U.S. dallar will continue devalue in a predictable future, and the foreign bond may help to hedge against the U.S. currency devalue.

·        Large U.S. Companies (20%)
If the U.S. economy slide into recession, which is very unlikely, I am sure that the largest multi-national U.S. companies will not only survive but prosper in 2008.  Why?  As U.S. dallar continue devalue, U.S. products and services will become cheaper to export to Europe and Asia, and these multi-national U.S. companies will certainly be benifited.

·        International REIT (5%)
Get back into RE funds but I am not sure the sub-prime crises is over yet.  Buying an international REIT fund maybe a good strategy to get into the REIT but not overly exposed if the U.S. housing market getting worse.

·        Commodity and Natural Resource (5%)
I'm becoming more firmly convinced that commodities can really serve a portfolio well.  With China and the rest of the world experiencing boom times, along with the issue of food being converted to energy thereby raising food prices, I don't see how commodities won't have a strong few years.

·        Energy and Environment Friendly (5%)
Next year will be a big year for clean energy and environment friendly products and services. A new Global Warming Treaty will be signed by 2009 - this time with US joining the pack.

·        Agriculture (5%)
The world will experience food shortage sooner than we originally thought mainly due to industrial and housing boom and the rapidly expanding middle class in the emerging countries, as well as soaring energy prices that are competing for corn products etc. 

·        Emerging Market (5%)