Investing Questions and Answers

Do recession come contained by cycles?

I happen to meditate that recessions come every 8-11 years regardless of other factor. Whether the Fed. is chaired by Voelker, Greenspan, or Bernake or a lib. democrat or conservative republican is president. It's adjectives part of a cycle. Do you agree or disagree? Why?


Answers: Cycle is a great word to describe it because it go up, then go down, then repeats. I do agree that it's not predictable because we don't know when it will start to walk up or go down. But we do know that at some point it will be in motion up, and at some point it will go vertebrae down (again, cyclical). We can PREDICT that it will go up and down.
"Cycles" hint predictability, which is not a good word to use because they aren't predictable.

The most that can be said is that bull market and recessions hold occurred masses times in days gone by, and will come and go within the future.

As for 8-11 year regularity, here will be many cases that do not follow this.
The second two recessions occur at 8 to 11 year intervals. But earlier recession happened more frequently than that.
http://www.minyanville.com/articles/evep...

The olden doesn't always predict the adjectives. The intervals between recessions own changed in the recent past. And they can change again.

Perhaps the administration can't stop the business cycle. But the government can breed the business cycle more volatile by encouraging excessive borrowing that triggers an economic boom. Which inevitably ends contained by a big bust, when people borrow so much money that they can't repay their debts.

There is a big difference between a mild recession and a great depression. And which one of these two you are possible to get depends closely on the actions of the governing body.

But you may be right that both political parties surrounded by USA are fiscally irresponsible. And the coming elections won't make much difference.
Micheal M hit it fairly well...

How can I hold my money from losing its advantage?

With the dollar losing so much value, what is the best passageway to store my savings so that it doesnt become a subject of inflation?


Answers: Invest in TIPS from www.treasurydirect.gov. -- Treasury Inflation -Protected Securities.

These are management securities that pay a premium above and beyond the inflation rate.
Gold have been used historically as a evade against inflation.

It's probably your best bet.
Save in EUR or GBP

What are some good, conservative bonds to invest in (instead of stocks)?




Answers: james bond
It is interesting situation currently. I read recently on a website, where tax-free municipal bonds are currently paying more than taxable bonds. This seldom happens.

Check out: low-cost-stock-recommendations

.com


Click on the "Bonds" button on the navigation bar...it has a "bonds pick"....read that part....it is very interesting


Good Luck
Do you want individual bonds, or bond funds?? Check out:
VFIIX - Vanguard's ginnie mae fund
VBIIX - Vanguard's intermediate term bond index
VPISX - Vanguard's Inflation Protected securities

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