2008 is shaping up to be a murky year for the economy and the stock market.  A turbulent end to 2007 has many analysts wondering if the long bull run might be over.  Investors will face many difficult choices on where to best put their money to good use.

While the bond market is often seen as a safe haven in troubled times, even it has it’s share of risk.  Fears of inflation coupled with a weak dollar, not to mention the impact of international involvement, could send long term rates soaring and bond prices tumbling next year.

Commodities markets seem highly favorable now with the prices of oil, food and gold skyrocketing this year. However, any analyst will tell you that these markets are highly volatile and that with the chance of high reward comes high risk.  So while this market makes a good hedge against inflation, you wouldn’t want to bet the farm on it because that’s what this market is, a gamble.

Most analysts tend to agree that tech stocks will perform comparatively better than other types of stocks even if the economy were to go into a recession.  But who can forget when the tech bubble burst earlier this decade and with many fleeing into tech stocks nowadays, investors might be bidding up prices to unreasonable levels.

While the housing market as well as finance stocks are down in the dumps at the moment, that may not always be the case.  Although I believe that these markets will continue to fall for at least the next six months, an investment in these depressed markets in the near future could be the springboard for substantial gains to your portfolio in future years.

What may seem like a smart decision now, might not be in a few years.  Now more than ever, it is important to maintain a long term view in your investment strategy.