Where to invest your money during an economic recetion?
Answers: Cash is king during a recession.
Try Shorting Stocks.
Go to www.share.com
You might look at stocks that have been bombed out during growth fases, like tech, there are many good stocks which are quite low because tech was hated and cant drop much further. You might want to look into commodities though, but not oil if you didnt buy it around 80ish its too late now for the time being.
Uswheat and soybean for example kept growing after the dow started to come back from 14000. If you would have bought Soybean right after 2008 you would be still slightly in the green.
Somebody else mentioned shorting you have to be able to closely monitor the market for that. ROberta Murphy, investing in real estate in the us is very diffifcult. It aint like its Germany where the equivalent of the east coast lives crammed in a state half the size of kansas. If you invest outside the few places that are afloat despite the current plundge you risk big. Why buy overpriced if there is plenty of more land to built onto ?
You might want to look at investing offshore. They have better rates than state side and always will.
Contact me for more information!
RECESSION
During an economic RECESSION make offshore investments.
Put your money in Belarusian bank.
You will get a 13% rate of interest with NO RISK AT ALL because all deposits are state insured.
For more details please email me at bestinvest(a)land.ru (with your nickname at runeye.com)
Good luck!
Don't go for stocks. Since the stock market is not going so well, overseas investments would be the best choice.
Starting a small business would be the way to go if you have time.
Alternatively try to invest in someones business. You may receive up to 20% guaranteed interest a year. You will not get such high guaranteed returns on stocks, mutual funds, bonds or CD's.
If you invest $10,000 at 20% annual interest rate, you will get back $12,000 in 1 year. I run my own business and my net profit is over 5% a month.
Email me at investment4us(a)hotmail.com and I'll give you a valuable advice if you are serious about investing. Please don't forget to mention your nickname and question at Y.A.
Best of luck!
How do you get the impression in the region of interest cuts ? Should Bernanke finally show a frozen paw instead of prone further to?
the spoiled child ? Imo what is happening is that investors realize that Bernanke can be bullied into lowering interest rates, therefore money flux is low despite polite bargains lying out on the street.If after this ending rate cut Bernanke would tell the street to suck it up, that no more are coming, or if he would hold done so already, wouldnt it have in actual fact benefitted the markets since nobody would be waiting for decreasing interest rates, but step for the opportunities out nearby ?
I mean if you are a big hill and know Bernanke is going to cut, you would try to get the gross money to invest after the cut, wouldnt you ?
Answers: Unfortunately it doesn't work that agency. There is too much pressure to lower interest rates and keep the honest times rolling. Actually, I think that what the U S really wishes right now is a perfect recession to shake out the weakness and reeducated the population that positive for a rainy hours of daylight is something they should be doing rather than maxing out their credit cards.
And I reckon that your point is well taken. The big bank would certainly do what you are suggesting ie keep hold of whining and putting pressure on Bernanke to keep lowering interest rates.
Thank you Muncie Birder. The bank got greedy (giving mortgages to anyone). The homeowners be foolish to think that they could knob a variable interest rate so they extended themselves and bought a bigger home.
The bank need to lift the bite in the azz (along near the shareholders) the public needs to lower and remove their consumer debt and spend wisely as powerfully as invest for their future.
It is a shame that lots hard working ancestors who just required to buy a home are suffering.
Greed never benefits you. These are lessons to be scholarly.
Why has the Australian share market lost so much in the last 10 days?
Answers: Because the boom is over. We've had an unprecedented boom for the last decade, with a few minor blips. But now it could be over for a while.
Don't stress. If you're an investor, you will understand that this is a long term thing. Invest in blue chip shares (banking stocks are a goodie apparently) and hold on to them for about 5-10 years.
After every crash, there is an even bigger boom. ALWAYS. So don't lose any sleep over it tonight.
I'm an investor, in managed funds. My funds are hurting a bit right now, but I'm putting a hundred a month into a fund. It'll be buying more units during the dip, so it's good value for money if you don't want to buy shares directly.
We are so closely dependent on the US economy, because they're so huge, that if they have a bad day, we have a bad day. Microsoft is bigger than our entire share market. That kind of puts things in perspective.
The US is trying to avert a recession by lowering interest rates and stimulating their economy. This hurts us because we're in the middle of a mining boom and our economy needs to be slowed a little before inflation gets out of control. So we raise interest rates, while the US is lowering theirs. It cancels out the benefits that raising rates might have on slowing the economy, and makes more problems.
Basically, the Australian share market is like a swimmer caught in a rip. The rip is the US market. If it gets stronger, we get sucked out to sea. If it gets weaker, we still have to swim in to shore. Either way we're stuffed.
Go buy some good quality shares, and hold them for ten years.
People are linking it too closely to the crisis on Wall Street.
I think it will level out and bounce back over the next six months as people realise the Australian share market is actually more closely linked to the Asian markets.
If I had the money I would be buying as much as I could get on the ASX at the moment. Luckily I am coming into about 60k late this month and it should still be a buyers market.
If you are in it for the long term (over 7 years.) there are going to be some incredible bargains for the next few months.
As a saying USA get hick up, Ausie get cold. Eventhought we are now trading more with the Asia
I think it has bottom. & from histories data, we would expect recovery 25% within 3mths
Subprime crisis and Bernanke spreading insecurity panick and cluelessness. Look at the bright side, when men like bernanke bomb out stock like that there are good stocks to be had at a bargain.