It is in troubled times like these that words of encouragement and optimism are needed. Or perhaps a new perspective to go with that glass of scotch? With the Dow hovering around 8000 and memories of the recent bailouts still fresh in the American psyche, people are hard pressed to look at their investments in a positive light. Realizing the true worth of a portfolio is a little tougher now, but still easily within the realm of possible for almost every investor.

There are also some great values in blue chip stocks out there and the fact is, no matter how you look at it, historically, the US has always pulled out of its recessions. It may take months or years but if people know where to look, and investors remain in the right mindset- that the number of shares of a quality stock matters more than its current value. Prices can and always will inflate and deflate and building up a portfolio rich in diversity is key. Even the most diverse portfolios have taken a nose dive over the past 9 months, but in diversity comes security as well as steady, sustainable growth.

Even if you’ve suffered some truly great losses, use those as lessons or opportunities to take a fresh look at your portfolio and begin to rebuild it in a way that is far more robust, far more manageable than in years previous. Take some time to reevaluate your positions. Reinforce those that make sense- those that will likely see positive benefits when the economy begins to recover. Get rid of any positions that will likely under perform in an economic growth period. Sell your shorts before they themselves get shorted. The time for speculation has passed and right now is a great time to bargain hunt.

Green energy, a huge benefactor of the Obama Administration’s plan to help the US economy recover is a great place to put money right now. Companies that supply raw materials and infrastructure services are equally as attractive due to the incoming administration’s plans for infrastructure development and investment. Right now is also an excellent time to create a portfolio for someone who is just graduating high school or wants to get into investing but has been discouraged in the past due to the cost prohibitive nature of many blue chip stocks and sectors. It’s never been easier or cheaper to get in on the ground floor and begin a lifetime of smart investing.

It’s time to look at the potential of your portfolio and realize that the balloon has been deflated, but the capacity for growth is the greatest it’s been in decades. When day-to-day life becomes harder and harder due to a faltering economy, often it is tough to make this realization. But in due time, if you are smart about the way you invest and plan for the return to economic growth, the sown seeds of potential will become a bumper crop of profits.

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