Five Big Ifs for 2006

Go With the Trend

Identifying the potential developing trends for the year ahead lays the foundation for picking stocks. By going through this effort, you can see which way the winds might be blowing and when any storm might kick up.

That's an essential step for any investor who wants to follow my rule of never spitting into the wind. It's a whole lot easier to make money in the stock market if you aren't constantly betting on trends that are possible but unlikely. The trend is your friend. Go with it.

But putting together a list of trends and a timetable still leaves you a couple of cards short of a deck when it comes to building an actual investment portfolio. In my next column, I'll take a stab at setting out some sectors, and maybe even pick a stock or two that will let you take advantage of 2006.

Whenever it really arrives.