Keep an open mind when investing this year

Chicago Tribune

Determining the worst and best industries to invest in this year requires keeping an open mind about what's considered bad or good.

You could, for example, employ the "bird in the hand" philosophy to select industries that have been--relatively speaking in a disastrous 2008--the most resilient and retain positive near-term prospects.

An alternative, a riskier method, is to pursue the "bird in the bush" strategy that seeks industries so far down that improvement seems likely. You just need to grab the eventual winners, a demanding task.

"The only businesses that will thrive in 2009 are pawn shops and bankruptcy firms," said John Buckingham, chief executive and chief investment officer for Al Frank Asset Management in Laguna Beach, Calif. "Having said that, however, we think the best areas for investment will be those industries and companies beaten up the most in the past year." Read More...