As the new year moves forward and accountants start to call, an investor may consider his/her year-end statements. Losses are, more than likely, a given. Tax “write-offs” are also more than likely. The question remains, what to do next? Small caps, dividend producing stocks, treasuries and bonds all offer options for a savvy investor to position a portfolio. But who is to know for sure which avenue to follow? The US Dollar is uncertain these days and commodities can move in a heartbeat. What many do admit is that smaller cap companies are where the future will be. A strategy to take advantage of this generally assumed concept is a possible way to go.
One might see the value in taking taxable’s from there and putting them over there to possibly make a nice little profit or tax benefit in the new year. In this sense, taking that proverbial first step is key depending upon personal circumstance. The fact, however, does remain that there are many small cap companies available that are on track to generate sizeable revenues moving forward in the new year. This is not to suggest that a respectable dividend play, bond and possible treasury move is not in order.
Generally, what this indicates is that diversification is the key as the year gets moving within the investment community. A balanced portfolio is the safe move as most do indicate that markets will be bouncing about with many not sure what will happen or when. A savvy investor thinks outside traditional norms in the small cap world. As small cap stocks are found in all sectors, looking at the many available options is the trick. QualityStocks offers a cross section in this respect and shows the options outside this “norm.” In 2010 balance will be the term most will be promoting, with small cap stocks being a large option.