Looking Back At 2005

This has been a rather somber year for persons who have been invested in the so-called "traditional" investments like stocks, bonds, and mutual funds.

While it is true that stocks and bonds are both up a small fraction for the year, they simply are not the places where money was being made in 2005.

Here is a look at the year-to-date gains for a variety of investments:

Corporate Bonds: +1%
Junk Bonds: +1%
Stocks: +2%
Treasury Bonds: +2%
REITs: +3%
Mint Gold Coins: +10%
Gold: +11%
U.S. Dollar vs. Euro: +14%

What the future holds in store is anybody's guess, but the stock market at this time is nothing to get overly excited about. In fact, there is reason to be concerned about stocks based on a recent news report in which the Treasury Department reported that foreign investors purchased $25 billion worth of U.S. stocks in September, 2005. This is the largest number since February, 2000.

The last time foreigners bought U.S. stocks at that rate, the Nasdaq dropped over 50% just one year later. That is not a good sign for stocks now.

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