2011 Investments: Dividends, Short-Term Bonds and Energy [Video]


The economy should continue to gradually improve in 2011 much in the same way as it has in 2010, but that doesn't mean the same investment strategy will work in the new year, says Oliver Pursche, president of Gary Goldberg Financial Services,

When it comes to stocks, ample free cash flow and financial stability will be the keys to success, especially given the increased volatility Pursche sees coming. That makes high-quality, high-paying dividend stocks more relevant than ever. "We prefer the U.S. multinationals that pay a strong dividend and have demonstrated the capabilities of growing their businesses internationally," Pursche says.

When it comes to bonds, fixed-income investors can look forward to more gains in 2011, but it's important to focus on shorter maturities, such as bonds coming due in three, five or seven years. "That helps reduce interest rate risk," Pursche says, and helps insulate a portfolio if a bond bubble should indeed materialize.

Lastly, commodities should have another strong year, but the darlings of 2010 -- silver, gold, platinum and palladium -- will likely take a backseat to more prosaic elements in 2011. "We think energy is going to be the place to be, in particular, coal," Pursche says, adding that investors must be prepared for extreme volatility.

For more on Pursche's 2011 investment outlook, see the video above.

Increase your money and finance knowledge from home

Introduction to ETFs

The basics of Exchange Traded Funds and why ETFs are hot.

View Course »

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

Add a Comment

*0 / 3000 Character Maximum

24 Comments

Filter by:
Robert & Lisa

Do you think evil, ultra rich man George Soros backs Obama and the corrupt Demoncrats out of the goodness of his heart? Or do you think he and the corrupt Demoncrats in power are trying to grab more power? Somebody is being deceived.

December 28 2010 at 8:06 AM Report abuse +4 rate up rate down Reply
Robert & Lisa

We are set up for huge inflation and lower standard of living. Thanks to evil, ultra rich man George Soros's puppets, Obama and the corrupt Demoncrats.

December 28 2010 at 8:04 AM Report abuse +3 rate up rate down Reply
Robert & Lisa

The stock market goes up even 20% and the dollar falls 30% in value, who wins? The precious metal investor or the stock investor?

December 28 2010 at 8:01 AM Report abuse +2 rate up rate down Reply
bfpowersjr

Mr. Burrows: Excellent article. However, I am feeling somewhat cautious and wonder if investors/traders have considered the idea of taking some profits and raising cash reserves that they could use for hedging purposes, if needed?

December 28 2010 at 4:42 AM Report abuse +2 rate up rate down Reply
Gumby

Energy is not a commodity be it oil, gas, coal, uranium, cow dung, firewood, or ethanol because once it is used it is gone up in the air stinking around! Burn , burn, burn, burn ! Combust, combust, combust .! It is a wasting asset that should probably not to be speculated on. Our economy gets in trouble mainly from energy costs. We simply cannot continue to burn more , more, more of those above. We can not, simple as that!

December 28 2010 at 2:33 AM Report abuse rate up rate down Reply
CnOWrms1

IT CONTINUES TO DROP. Obama's Approval Rating, Rasmussen Reports, Dec 27, 2010 - Job Performance: 29% strongly approve and 39% strongly disapprove - 48% somewhat approve and 51% disapprove - (rating index -10). {{ In Oct 2010, BO's job approval was at 44.7%, a new low at that time.}} (Congress rating 13%). Just 27% believe that Russia will honor the terms of the START Treaty. Role of Govt: 24% say to ensure fairness and social justice & 10% say to manage the economy. In 2008, Obama won 52% to 46%. In 2004, George W. Bush received 50.7% of the vote while John Kerry earned 48.3%. Remember when Obama's job approval rating was at 55%, lefties? About a year and a half ago? Miss Bush yet? YES, IN EVERY WAY!!!!!!!!!!!!!

December 28 2010 at 2:15 AM Report abuse +1 rate up rate down Reply
CnOWrms1

IT CONTINUES TO DROP. Obama's Approval Rating, Rasmussen Reports, Dec 27, 2010 - Job Performance: 29% strongly approve and 39% strongly disapprove - 48% somewhat approve and 51% disapprove - (rating index -10). {{ In Oct 2010, BO's job approval was at 44.7%, a new low at that time.}} (Congress rating 13%). Just 27% believe that Russia will honor the terms of the START Treaty. Role of Govt: 24% say to ensure fairness and social justice & 10% say to manage the economy. In 2008, Obama won 52% to 46%. In 2004, George W. Bush received 50.7% of the vote while John Kerry earned 48.3%. Remember when Obama's job approval rating was at 55%, lefties? About a year and a half ago? Miss Bush yet? YES, IN EVERY WAY!!!!!!!!!!!!!

December 28 2010 at 2:15 AM Report abuse +1 rate up rate down Reply
savemycountry911

I sold some gold for three times what I paid. Wish I bout more when it was $500 an ounce. Who knew? It will all come crashing down one day.

December 27 2010 at 7:21 PM Report abuse +1 rate up rate down Reply
1 reply to savemycountry911's comment
Robert & Lisa

You sold too soon. With Obama and thugs still in place, it's got a long way to go...

December 28 2010 at 7:59 AM Report abuse +2 rate up rate down Reply
tzizzi49

In the coming year try this time tested investment strategy: Buy low--Sell high.

December 27 2010 at 5:02 PM Report abuse +1 rate up rate down Reply
vrd071265

I would sale the Bond as interest rate rises and price will fall. I will consider to buy the high dividend stocks.

December 27 2010 at 4:11 PM Report abuse rate up rate down Reply