5 investment alternatives for 2011

Nervous about the outlook for equities next year? If you think the S&P 500 is overpriced, here are five places to park your cash in 2011.

1 of 5
Buy a bond fund
Buy a bond fund

With all the recent talk about a bubble in bonds, can fixed-income still be a safe haven if stocks crash? The quick answer is yes, if you pick the right place to invest. One of the best places to be in recent years has been Templeton's Global Bond fund, which is led by Michael Hasenstab. Since he took the helm in 2001, Hasenstab has steered the bond fund to 12% annualized returns, according to Morningstar, far outpacing the benchmarks.

He's done it largely by avoiding convention. Hasenstab doesn't hold U.S. or Japanese government debt. Instead, he likes the bonds of countries with low-debt levels and solid growth prospects, such as South Korea and Australia. Even as the fund has attracted more than $18 billion of new money this year, Morningstar analyst Miriam Sjoblom thinks it can keep succeeding. "This Analyst Pick shows no signs of slowing," Sjoblom wrote in her most recent report.

NEXT: Bet on the bears
Last updated December 29 2010: 12:03 PM ET
10 best stocks for 2011 Investors' fears that a bear market will return (and linger) has made for some bargains - and this group should thrive even if inflation returns. More
6 stocks for a greener planetSolar, wind, and other green stocks got hammered in the downturn. Now might be a great time to buy. More
Money managers' picks for 2011 Credit card companies, commodities, IT sector and more - check out what top fund managers will be buying in 2011. More
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.44%4.49%
15 yr fixed3.88%3.92%
5/1 ARM4.22%4.27%
30 yr refi4.44%4.48%
15 yr refi3.87%3.90%
Rate data provided
by Bankrate.com
View rates in your area
Find personalized rates: