Is gold a good investment in a recessionary market?
Answers: Gold does not rise because of expected recession
but because of
* expected inflation,
* expected interest rate reduction (well, it might happen
in periods of recession)
* uncertainties about the monetary and financial system
safety,
* international political uncertainties.
What you have to foresee is if those effects and
uncertainties are going to get worse and create
some panic. In that case, what is just a strong price
rise might accelerate into a full fledged gold bubble.
If those uncertainties are on the contrary temporary
and excessive, then the rise will lose speed and gold
will go back to hibernation.
I have my pet scenario among those two.
But everybody is responsible for its own bets,
so you better analyze the facts and decide
by yourself.
.
All right ,now you see the gold price is $895 per aunce ,and will be higher in the near future ,its really a good investment item.
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Are we heading into a depression?
They've been maxim this for a while, but I keep seeing adjectives these so-called corrections and wonder if it's coming true. If so, how bad do you dream up it'll be, and what industry do you think will suffer the most minuscule? Best answer to the most informative, whether I agree with it or not.Answers: No, no depression. As much as I disgust Bush, I can't say that he's prime us there.
We are heading for a recession. I predicted it going on for one year ago, before the current mortgage situation come to light. The signs be simple enough to see--as long as you be looking.
Steady GDP growth, median income growth lagging far trailing of that which was not virtuous. Why? Because it pointed to debt financed spending for lower middle and lower class as well as erosion of affluence from middle class.
Mortgage markets didn't do their homework, overextended themselves by extending loans to those already over burdened beside debt, and they got burned. Creditors' go together sheets are strained, and they are not lending similar to they were in the past. Which means, smaller amount spending money available for consumers, even without the rise within oil prices.
No depression. The feed learned it's lesson from the 1930's. What cause the depression was the Fed's declaration to actually REDUCE the money supply after the flea market crash (which caused bank to fail and created nouns and a run on solvent banks to gain their cash out back they failed too, but they wouldn't enjoy otherwise. Fear is the enemy contained by a jittery economy). This causes deflation, which is in actual fact worse than inflation, becuase companies lose money quicker in nominal lingo (accounting is done in nominal dollars. inflationary accounting is not practiced within the US), which causes massive layoffs. It's a callous cycle to get into, really. The Fed intellectual it's lesson because in 1987, when the flea market crashed again, Greenspan assured the markets that the Fed would supply ample liquidity to prevent runs on banks.
Bernanke's comments today imitate the points made above. The Fed is going to ensure the market have enough liquidity to fracas off any threat of a depression, but timing of policy modify to prevent recessions take more precision than exists today due to the 30-45 day padding in financial data compilation.
Well its Recession. And we are into it.
:-)
Probably not a depression.
Mild recession some increase contained by inflation and increase in severance.
The earnings for most of the companies that are publicly traded are doing fine and increasing.
Oil dithering, terrorism/war issues and a host of other external factors play into this so don't return with wrapped up in the
"Do we own a Depression" discussion.
Who cares.
The Bear market of the 70s, early and past due 80s, early 90s and untimely 2000's were a short time ago mondo buying opportunities for me. I don't discharge much attention to the clutter being spewed from the 24/7 investment report networks. It isn't hard to find score of idiots who will tell you the world is just about to end; lately as easy to find other idiots who will narrate you all is great.
Slow steady predictable investment surrounded by a broadly diverse group of vehicles will pretty much assure you of nouns with long permanent status investing.
A recession, probably, a depression, very unlikely.
A depression is unlikely beneath fiat currency, although still possible, it is quite unlikely.
I estimate it will be a retooling recession. I think our cutback is getting ready to fund China and settle up back our debt. It will be impossible to digit out who will make out the best, but the worst is promising any luxury related firm that focuses only on the United States.
No depression merely a recession which we're already in. Obviously bank and finance enjoy suffered as a result of the mortgage mess which is driving much of the problem (along with the vastly inflated national deficit). The cause for recession and not depression is that despite some inflationary factors interest rates will stir down mitigating the effects and preventing total collapse of the mortgage industry. The easing of rates will result in more $$$ available for other types of borrowing too so we'll solitary see a ripple rather than a free tumble as corporations will also take plus of easier money to develop new products/services. So far as suffering least possible...any company with strong over sea interests.
Name 3 stocks I should buy that are most feasible to step up tommorow?
Give a ticker symbol if you have one.THANKS
Answers: Really bearish...
SH
DOG
RWM
Thats a silly winter sport, but I'll play..
QQQQ (Nasdaq 100)
IBM
C
Don't day trade approaching that in this bull bazaar. Look long term.