At the moment I'm still a little averse to the stock market You're smart to have recognized that you need to diversify, but don't fear the stock market! How m

At the moment I'm still a little averse to the stock market You're smart to have recognized that you need to diversify, but don't fear the stock market! How much of this applies to you depends on your age (I'm 22), but this is when most people should be setting aside a little money for higher-risk investments. Risk doesn't mean invest into a poorly-performing company and start praying, but try to find a couple profitable micro-caps or small-caps and stick $500-$1k or so into them. Personally, I look for foreign micro-caps that run great profit margins and make physical products that people need (primarily healthcare / transportation). Patented products are even better. Not only that, but right now there are plenty of large-cap companies that have lost a lot of value not because they're bad companies or losing money, but because everyone is simply dumping stocks out of fear. Either way, do your research on the balance sheets + income statements, take a good look at how they well they approach their core competencies/products and make an informed decision. Regardless, the job losses and increasing foreclosures have only begun to take effect, so don't be surprised when 2009 brings the market lower and opens up even more investment opportunity.