Every morning, I read the Wall Street Journal for a glimmer of hope for the US economy. On some days, today being one of them, the paper is filled with good news followed by a positive forecast and a upbeat market. Just when I think we have what it takes to get out of this economic stagnation, my hopes are dashed with one bad news after another. For myself and others following finance, this has been the common theme for the entire past year. We all face the same question: When will there be any certainty in forecasts?

Perhaps some of you know. I definitely don’t. My goal today is to give you write about some stability in the midst of volatility. Perhaps, investing in the stable is what it takes to revive the entire world market?

I. Agricultural Technology Stocks

The recent media hype around Potash Corporation and the hostile takeover bid by BHP Biliton LTD have brought to my attention the necessity of agricultural advancements to keep up with world demand. BHP has offered almost $40 billion in hopes of becoming a top producer of Potash (Potassium derived compounds used heavily in fertilizers). Several other small offers soon followed. The world will come out of the recession understanding that demand has exploded. Investing in innovative firms won’t make you a millionaire overnight, but will be a great producer in your portfolio.

Potash Corporation of Saskatchewan

2. Pfizer

Health care stocks, namely Pharmaceuticals, have been underperforming ever since the health care reform bill was passed. There are two major reasons for this: $140 billion worth of the top blockbuster drug patents will expire in half a decade (Source: Money Magazine) and there are investor fears of profit declines as prices drop. Pfizer is the largest Pharmaceutical firm and has been actively pursuing the emerging drug markets (the likes of Iran, Turkey, Venezuela, Poland) and have bought out smaller and more innovative firms in hopes of developing new drugs. This health care giant pays off great dividends and will only be growing as health care costs increase in the near future.

3. Gold

Everyone is pessimistic about the short term prospects of gold. When it was 1,100 ‘experts’ were betting that it would fall. Now, gold is hovering around the  mid-1200s, and there haven’t been any signs of a price drop. Even in the worst case scenario, gold prices tend to be stable around inflation. In the long term, gold prices always increase as it is an unsustainable commodity used for jewelry and electronics.

4. Oil Companies

With all the hype surrounding massive losses by BP, people seem to forget that ExxonMobile is still the second highest grossing company in the world and oil prices are only going to increase. Modernized oil companies that can prove to state officials that their methods of offshore drilling are safe and environmentally friendly. Since the BP spill disaster, some drilling firms have lost up to 50% of their value. It’s a buyers market – once the media frenzy is over, these stocks are skyrocketing. You can’t go wrong with oil.

5. Express Scripts

One of the three largest PBM’s (Prescription Benefit Manager), Express Scripts has one of the lowest operating margin in the health care industry. A recent struggle between Walgreens’ and CVS’ respective PBM’s have disenchanted loyal customers and allowed Express Scripts to come out of fire unscathed. Now trading at a relative low, express scripts is a great stock to snatch (currently around $44 a share with a 52 week high of $54). PBM’s are only becoming more influential as drug costs increase and are now offering more services than ever before. Jumping on this bandwagon will provide you with a stable investment during these turbulent times.

I have highlighted 5 safe investment ideas above. What do you think about my choices? Do you have any to add yourself? Let the readers know!

Here are some things to consider in order to understand if buying gold is the best idea for you:

1) Know the type of gold you are buying:
1. Direct ownership- The value of gold fits the pure economic model of supply and demand and can not be altered by government intervention.
2. Gold exchange – traded funds- The recent explosion in exchange traded funds (ETFs) presents an even more interesting way to invest in gold. An ETF is a type of mutual fund that trades on a stock exchange like an ordinary stock. The ETF’s exact portfolio is fixed in advance and does not change. Thus, the two gold ETFs that trade in the United States both hold gold bullion as their one and only asset. You can locate these two ETFs under the symbol “GLD” (for the streetTRACKS Gold Trust) and “IAU” (for the iShares COMEX Gold Trust). Either ETF offers a practical way to hold gold in an investment portfolio.
3. Mutual Funds – Investing in a gold mining company.
4. Junior gold stocks.- a more speculative and less physical method of owning gold.
5. Gold options and features- An experienced investor should invest in options and features that will allow them to predict the price of gold in the future.

2) How can I invest in gold? Where do I buy it?

You can purchase gold bullions from a dealer or your bank.

3) Why can investing in gold be a bad idea?

Gold is too exposed in the market right now and has become front page news. Every time I flip on CNBC or click to mainstream financial website, I have a better than average chance of being reminded gold is once again at all time highs. Anytime an investment – gold, housing, oil, or even tulips – has become front page news, the end is likely drawing nigh and the smart money is slowly exiting the playing field. Remember, the smart money sells when the news is at its best. Also, gold produces no tangible income and is rather useless for chemicals and industry and is largely needed for its physical appearance.

Is now the right time?

In my opinion, you should not invest more than 5% of your portfolio into gold because its price in the future is merely speculative. It has broken too many records and can come crashing down when investors realize it is not worth as much. Is it a bubble? No, because the price is largely tied to the drop in value of the American Dollar and fear of the stock market, rather than investor splurging.

If you’d like to pick up a few gold coins, or bullion, as a percentage of a broader long-term investment portfolio, that seems reasonable. If you dump your entire nest egg in gold, betting on the continuation of tough times, well, that just sounds too risky for my liking.