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Investing money in 2011 through 2012 may require that most people change their thinking about the best investment strategy. Traditional investing strategy for average folks suggests an asset allocation of over 50% to stock funds, about 40% to bond funds, and the rest to perhaps a precious metals (gold) fund for added diversification. In the world of investing money, times are changing; especially for bonds and gold.

In putting together your investment strategy one of the best ways to focus is to consider the flow of money between asset classes over the recent months and years. In the investing world money always goes someplace, and it tends to concentrates in different areas at different times. When money floods an asset class like bonds or gold, prices can rise dramatically. When it makes a grand exit prices can tumble. Extremes in price movements should grab your attention when investing money for 2011 and beyond, especially when you hear mention of the word “bubble”.

In the months leading up to 2011, investors both large and small were investing money heavily in bonds and in precious metals like gold. This investment strategy was among the best as prices in both asset classes climbed to record or near record highs. Millions of everyday folks threw money at bond funds and some discovered gold funds. The question going forward: are prices at extremes, and is either investment a bubble waiting to deflate or burst? Let’s look at bonds first.

Investors have flooded bond funds with an additional net inflow of hundreds of billions of dollars while pulling money out of stock funds in recent times. The bond funds have then taken this money and bought more bonds, in the process sending bond prices up to extremes. This has pushed bond yields (interest income as a percentage) to near-record lows. Looking back to 1981, the 10-year Treasury note (intermediate-term government bonds) hit a high yield of 14%. Today they’re paying less than 3%, near historical lows. The problem: investing money in bonds and bond funds carries a significant risk today. When interest rates go UP, bond prices (values) will FALL. If there is a bubble here it will deflate as investors rush to pull money out of bonds.

The best investment strategy for 2011 in the bond department is to avoid long-term bonds and funds that invest in them because they will get hit the hardest when rates go up. Who wants to get stuck at a low fixed interest rate for 20 or so years when rates are going up? Go with shorter-term funds holding average bond maturities of 7 years or less. DON’T chase bond funds; consider cutting back your holdings. Investing too much money here has too much downside risk associated with it… unless you’re willing to speculate that interest rates and our economy will stay depressed well beyond 2011.

Now let’s get a perspective on gold prices that recently glittered at an all-time high of over $1400 an ounce. In 1999 gold sold for as little as $253. Investing money in 2011 and beyond in gold or gold funds at these prices is as much speculation as it is hedging against disaster. The best investment strategy here is to take some profits if you have them. If you missed the boat in gold, wait for the next one. The price of gold has been unstable at best since the yellow metal resumed trading in the U.S. in the mid-1970s. Don’t view gold as the best growth investment. View it more as a speculative bubble with risk outweighing future profit potential. The price would have to go up $1400 an ounce in order to double your money at recent prices. This is not a likely scenario.

Now that you’ve cut back on bonds and precious metals, what’s the best investment strategy for the rest of your money? Unless you’re over the age of 80 and/or extremely risk adverse, you need stocks in your investment portfolio. There hasn’t been a real bubble in the stock market since 1999 when the Dow peaked and closed the year at 11,497. In late 2010 that ever-popular stock market barometer was fighting just to get back to its 1999 highs… after the shock delivered to it by the financial crisis of 2008.

In 2011 and beyond investing money in stock (equity) funds should focus on both those that invest in domestic (U.S.) stocks, and in international funds that invest money abroad as well. You need all of the diversification you can get. Go with funds that invest money in large well established companies with a good record for paying dividends. These are less risky and volatile than growth funds that pay little if any dividends. Plus, good reliable income from either dividends or interest is hard to come by these days.

For the rest of your money you need good safe investments that pay interest. Here we face another of today’s extremes: historically low interest rates at the bank and in the money markets. Even though you’re looking at less than 1% a year in interest, you’ve got to go with the flow and continue investing money here because these are truly the best safe investments. The best investment strategy for mutual fund investors: money market funds. When rates go back up your money market fund yields will automatically follow and go up accordingly.

The best investment strategy for 2011 and beyond will be to diversify broadly, leaning toward a defensive posture. Investing money across all of the investment classes mentioned is still the key to long term success as an investor. Sometimes… like now… it’s better to be more conservative when investing, and live to chase opportunity another day.

Sometimes, it takes more than simple information to know which areas, states, regions or localities provide the most exciting ground for foreclosure investing. To uncover the most profitable opportunities, you need to look at foreclosure statistics, trends, and other indicators that could give you an idea and feel of the entire market at any given time.

If these indicators are to be believed, then it is truly a perfect time to invest in Los Angeles Real Estate. Right now, the market shows that prices of foreclosure houses in Los Angeles continue to drop and this presents a unique window for buyers who are on the lookout for financial opportunities.

Good Deals Are Everywhere

A good deal in foreclosure investing simply means that the buyer stands a great chance to land a profitable investment. If you look at the current landscape of Los Angeles Real Estate, you will notice that the market is ripe for reaping some of the best deals in the foreclosures market.

For one, you can actually find and buy not only good and fine homes, but also high-end and stately mansions at a fraction of their real market values. It is not surprising to find foreclosure houses that boast of grand fireplaces, large bedrooms, vintage tiles, fine woodwork, and wide, open outdoors.

Whether you are interested in Los Angeles Real Estate as a personal buyer or for an investment purpose, you will absolutely appreciate the possibility of owning a luxury home at a very affordable price compared to what it would cost you to build a new one. In Los Angeles, luxury homes account for a significant portion of foreclosure houses that are being sold cheaply to those who are interested to own a property in the area. In fact, the price trend for these homes is continually moving downward – a perfect indicator for those who want to save thousands of dollars.

On the other hand, if you are primarily into house flipping, another reason to invest in the Los Angeles Real Estate market is the fact that there are also a lot of distressed homes that you can buy and flip for a large profit. These foreclosure houses can be profitable to the investor provided that he knows what to buy and how to resell it eventually.

If the most expensive houses in Los Angeles are going on sale, more so are their distressed homes. You do not really need to look hard enough to find one that would fit your budget. You just need to have a good sense and idea of what it is you are looking for. With the help of a good and reliable foreclosure listing, you can easily find the best foreclosure houses to invest in Los Angeles.

Are you wondering if real business opportunities actually exist out there on the Internet. There are a lot of big claims and people talking about this industry every single day but quite honestly not a lot of people begin to make income because they always come in with the wrong mindset of being able to get rich fast without doing much work in the process to make this occur. Are you coming in with that mindset as well? If you are and I strongly suggest you reconsider your values and your approach to this whole business.

The truth is that there are many real business opportunities out there that you can get involved with today that can make you a ton of cash with. The first step you’re going to need to do is actually believe in them. You have to have that belief level and not be afraid to fail. I’m sure that you may have lost money in the past after joining various programs and that’s all normal. If you let that take you out of the game then you’re always going to fail… trust me.

In this day and age there is no reason why you can’t do a quick Google search on exactly what the company you’re going to get involved with is all about. A couple of minutes of easy and simple due diligence can really take the long way when it comes to picking the right company.

The people who tend not to focus on researching first get burned unfortunately. They just want to join anything and everything under the sun and forget to look for stability. A stable program will always pay you but one that says you’re going to make millions in a couple of weeks will most likely going sink underwater faster than you can ever imagine.