I think the following investment areas represent opportunities: infrastructure (the federal government is focusing specifically on infrastructure expenditures to improve employment numbers), health care (we still have an aging population, and increased FDA activity, which benefits pharmaceuticals) and technology (as companies operate with fewer employees, any monies they do spend will be focused on technology first in order to operate more efficiently). If you don't have a lot of money to invest, I recommend no-load index or sector funds as an entry into these areas (to diversify company risk). Make an initial minimum purchase and then dollar-cost-average monthly with additional buys. I am assuming that you are fairly risk tolerant and have an appropriate investment horizon in front of you. ETFs can also be appropriate investment vehicles, but you should consult an investment adviser first. Note that I also think real estate is cheap and a great opportunity (even if we have not hit bottom yet — consider the all-in cost of real estate in 10 years with significantly higher loan rates compared with today’s cheap credit).

That’s a great question. Generally you want to look at the sectors that have gotten beaten up the hardest during the downturn. Sectors that have taken it on the chin the biggest are the financial and housing sectors. Both of those sectors have room for big rebounds when the economy recovers. The financial sector has been hit particularly hard because of the mortgage meltdown. Many of these large companies are down at historic lows. They have shown nice recoveries from the stabilization of the financial sector through the TARP bailout plan. When the economy recovers they will get a further bounce from the enormous write-downs they have taken in their mortgage portfolios. The housing sector is also at historic lows and when the economy shows signs of recovery should get a bounce. Historically, technology is another sector that tends to lead the market out of a recession as companies tighten their belts and look to automation to improve productivity. Another sector to watch is commodities. With the enormous amount of debt that we have added to our national debt and with the stimulus plan in place, when the economy starts to recover, there is the probability of inflation and increased interest rates. Though this may not be for some time, when it happens commodities will also benefit. For your best strategy, you need to sit down with your financial adviser and develop a plan for you that meet your needs and risk tolerance!