Gold Notches All-Time High:
Why We're Still NOT Celebrating

Smart Money Move #1: If you're not invested in gold, consider putting a small portion of your investable capital into the precious metal. We raised our 2008 target price for gold to $950/oz. before June. We said that if the the Federal Reserve continues to mismanage monetary policy by dramatically cutting interest rates, $1000/oz. would follow. It did.

But, as always, be careful when investing in gold! It provides a rocky ride and we recommend you minimize your risk by investing a smaller amount. If you do invest, do not put more than 10% of you investable capital in gold. If volatility and risk make you uncomfortable, that's okay. You should stay away from gold and stick with what makes you comfortable.

Smart Money Move #2: As we told you recently (see Fed Prepared to Make More Cuts: What This Means for You), stocks are very risky right now. We recommend that you consider getting out of stocks for now with the threat of inflation or stagflation so high. Keep your assets in cash, with some of that cash in non U.S. dollar investments.

On a personal note: we recently bought shares in two exchange traded portfolios: the Rydex CurrencyShares Australian Dollar (symbol FXA) and the Rydex CurrencyShares Swiss Franc (symbol FXF) for our own account.

Smart Money Move #3: Make sure you're saving enough. With bumpy times ahead, you should have at least six months of expenses at the ready should you need them. If you haven't reached that goal yet, take steps as soon as you can to set more money aside for a rainy day. (We have lots of ideas for you in the Save More section.)

Finally, be sure to check back here at Dolans.com as we keep you up to date on all of the important news, how it affects you and what you can do about it.