If you owned a piggy bank when you were a kid (or even now), you know that every coin that went into that bank was worth something to you. Pennies, nickels, dimes, quarters and the occasional silver dollar from your grandfather meant that your stockpile was growing. But, you may have learned something else...a lesson that was more rhetorical than financial. If you looked at each coin closely, you discovered that each coin had two different sides.

That's what I thought about today when I read an email that another financial site sent to me. In that email, I learned that this site was promoting all the issues that Obama was endorsing in order to make gains from those new policies. “A big chunk is targeted toward rebuilding and upgrading the nation's infrastructure,” which meant an investor might look to construction.

Another perspective included “massive restructuring of the health care system in the U.S. - specifically through electronic medical records.” They suggested looking at companies that handle this portion of the medical industry. If you're an investor who follows government movements to find the next big industry, then this email would have been up your alley.

If, however, you think about the other side of the coin, then you would have noticed that many of these industries no longer provide the interest you looked for decades ago. In the 1940s it was the defense industry. In the 1950s and 1960s, growth occurred in electronics, the auto and aviation industries. In the 1970s it was “all about oil.” In the late 1980s, computers and technology took off. All this, because government was interested in developing these technologies at the time.

Now, the defense industry is in flux, although you might find some interesting investments in that sector today. Same with computers and computer technology. You even can find some great investments in electronics, autos and the aviation industry, but none of them will make you rich overnight. In fact, at this point in history, some of these investments might have broken your portfolio.

What I'm saying is this: If you're a short-term investor, by all means, go for whatever cranks your tractor on any particular day. But, if you're a long-term investor, something may have hit a nerve. Just how long term were those investments? And, how will this  time frame of a decade at a time for any new investment idea affect your long-term investments in the future?

I know one person who sold every stock he had when he discovered that a particular bank accepted a bailout package with sales of common stock in exchange. He bought up as much of that bank stock as he could at a little over one dollar and sold it weeks later at four dollars per share. He made his entire year's salary in less than one month, and – being a bit conservative with his money – he put his greed aside and sold two days before the bottom dropped out again on Monday this past week.

What's so surprising about this move is that this person normally is a long-term investor. Some of the stocks in his portfolio have been in his possession for almost a decade. While I wouldn't want to be in his shoes come tax time next year, he recovered everything he lost in the market over the past two years.

Am I suggesting you do the same? No, absolutely not. The time for that type of move on the banks is over in many cases. It's a high-risk move. But, it goes to show how people can improve their lot during these trying times – but only if they have the resources. As my father is fond of saying, “It takes money to make money.”

But, you can lose money if you make certain moves, too (the other side of that coin). If, for instance, you think that a given mineral is on the uptick and you decide to dump your money into that sector, you might do a bit more research before you make that move. Do your research. Learn where your investment choices come from.

Take your time – many projects are years from becoming reality, although that email suggested that the investor better move quickly. I'm more of the move-slow-and-think-about-it mentality, as I like to look at both sides of every coin. And, then, I like to think about what those coins might buy in the future.

So, if you're thinking about investing in a specific sector, think twice before you make your move. If you like holding onto stocks for a decade or more, your investments in those industries may wane before that time period is up.

Instead, stretch your mind and look past this administration to the other side of the coin. Think about what this country might need in ten years, not in the immediate future. This is what may make your portfolio happier, and it will provide less stress for you. After all, it's a real pain to make portfolio changes every time a government administration changes its policies.

Until Later,
Linda Goin