Happy New Years!

It will soon be the eve of the first trading day of 2007. This new start brings all of us the ability to compete once again with the S&P 500 and try to beat the market. Last year you had to beat 16.3% to top the S&P. I'd like to think I could have bested that with my own portfolio had I been in for the full year (3 months gave me 5% ups). Though this is my first full year of trading, there is so much I learned last year, I feel as though I actually have the ability to contribute useful and truthful nuggets of data to those looking to make money in the market. However, what will be the greatest insight into making money? Here are three that come to me off the top of my head:

1. Good as gold. With all the talk of a falling dollar, wouldn't one think that gold would be a safe investment? With many foreign companies changing their receipts from Dollars into Euros, gold would be the safest hedge against a falling dollar. However, don't get too greedy with gold. With the economy of the US slowing and interest rates in Europe and Japan being favorable to their currencies, watch for a bottom of the dollar in '07. If the Fed decides to cut rates to give the US economy a shot in the arm, jump ship and get into companies that benefit from this!

2. Stocks heavily levered to foreign currency. This is a play off of #1. With the dollar feeling weak, use this to grab stocks that have put in their forecasts at a time when the USD was worth more than it is now. When profits come in from other countries, the money will be worth more USDs than when originally stated in earning estimates and we should be in for a nice surprise. An example or two? How about MO, JNJ, DOW, and DOW).

3. My third idea? Well, not an idea of my own, but one of Jim Jubak's of MSN.com and TheStreet.com. Oil has been historically strong in Q1 of the year. With the brunt of winter months coming in January and February, heating oil will be in high demand. OPEC has said they will cut even more oil in February. Look for an early year jump in oil prices. Go with the Oil Service Holders (OIH) or any of the large companies like XOM or CVX. We know from the past that they have done well when oil prices have jumped.

One last bit of advice: don't fall in love with those stocks that gave you great gains last year and don't be afraid to take those gains and put them to work elsewhere. The economy now is as different as it have ever been. What worked last year might not this year. Change your mind. Don't give the market all your money back. Lock in those gains and research, research, research what will make you money in '07.

Tomorrow will be my first portfolio post. Until then, good luck and Happy New Year!