The year 2012 is set to be a very interesting year to trade equities.

Do you want to risk trading when things are so risky and there is a massive flight to bonds.

The short answer is YES, because when everyone is fearful, that’s when you should be looking for buying opportunities. No one ever got rich from buying stock in something that was already high up there, not least the old sage of Omaha himself, Warren Buffett.

The EU debt crisis which is causing many other countries to go under economically will be the deciding factor. As well as unrest in the Middle East and an increase in terrorism worldwide, anything can happen.

Do your own research? Yep, you heard that right. First you have to look at what sectors you think will be moving up this year, then you start picking the good solid companies, possible with good dividend payments.

2012 should be a good year for commodities, especially if there is an attack on Iran.

First thing the Iranians will do is close the Straits of Hormuz in which 65% of the world’s oil has to pass through.  Before that happens I’d make sure I had bought some oil, because when it rises to $500 per barrel, you’ll be rich.

Buy Gold and also food, energy companies.