Will Your Investments Buck the Trend?

by Investing School on August 10, 2011

The stock market has to a great degree recovered from its precipitous plunge between March 2007 and October 2009, but that bear market had a painful effect upon many investment portfolios. Almost everyone took a hit, but some people managed to buck the trend. Those investors who predicted the drop, or managed to purchase just the right assets, still saw a profit.

Bucking the trend is exactly that sort of situation. It defines a moment when an individual or a class of assets moves in the opposite direction of the overall market. That trend could be up or down, but generally it is a term reserved for a positive movement. This term, by the way, is used in many contexts, it is not reserved for the financial market alone.

Of course, the best way to buck the trends, and continue to make money regardless of the market situation is to have a long term strategy. A properly diversified portfolio has a better chance of surviving short term fluctuations than one which is heavily invested in a small variety of assets.

Anticipating which stocks will continue to do well even in a slow economy can require quite a bit of knowledge. Gold tends to increase in price every time the economy falters, for example, and trading in commodities or on the Forex are other options to consider. Unfortunately, there really is no guarantee that any particular strategy will allow you to buck the trend successfully.

Only time will tell if you have the special knack which allows you to buck the trend and make money no matter when.

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