Recession Proof Investments

[bender]

Okay, I'm worried that there might be a slowdown in the U.S. economy next year. So, I'm looking at recession proof investments in case a full blown recession occurs. I've been looking at VIS, a Vanguard ETF, because large cap industrials do better in a slow down. Discuss. :brilsmur:

[harvey_mayway]

Okay, I'm worried that there might be a slowdown in the U.S. economy next year. So, I'm looking at recession proof investments in case a full blown recession occurs. I've been looking at VIS, a Vanguard ETF, because large cap industrials do better in a slow down. Discuss. :brilsmur:

Bender that isnt going to happen...


The economy is set for atleast 5years...


becuase my cousin works for Standard and pauls... and they rate fortune 500 companies...

their soo much money flotin about at the moment...


Look to invest your money in something what will give u a large return...


Try investment pots.... Three Pots, high risk, Low risk,, and Intrest Pot..

try a 30 /70 % slipt, if your young..

or a 50/50 slipt if you shit-scared of what might happen...

[reaz]

Okay, I'm worried that there might be a slowdown in the U.S. economy next year. So, I'm looking at recession proof investments in case a full blown recession occurs. I've been looking at VIS, a Vanguard ETF, because large cap industrials do better in a slow down. Discuss. :brilsmur:


You're on the right track if you think there is going to be an economic slowdown. Stalwarts are usually recession proof. People won't stop eating cornflakes during recessions. Nor will they stop using toilet paper. I guess industrials who manufacture daily living items like that are recession proof.

I wonder how bonds and money markets fare during recessions.

[bender]

You're on the right track if you think there is going to be an economic slowdown. Stalwarts are usually recession proof. People won't stop eating cornflakes during recessions. Nor will they stop using toilet paper. I guess industrials who manufacture daily living items like that are recession proof.

I wonder how bonds and money markets fare during recessions.

Bonds do good in a recession if the fed reduces interest rates to help the economy. Money markets will do bad.

[BlueDukie]

harvey_maway is way off base. First of all, it's Standard and POOR'S. I don't know who that paul guy is.

As far as recession proof investments. I honestly think the best investment may be leaving it all in cash. If you're reading and economics textbook, they'll tell you that large industrials are supposed to do well during a recession, in the marketplace they get dragged down with everything else. If you think the market's going to go down and you want to buy now, just stick it in bonds for a little while. Additionally, once the market drops (bringing the good stocks down with the bad), you can buy the good stocks for cheap. Money markets are good right now, but if the interest rate falls, they'll go down south too.

As far as the market going down, that's an interesting question. While there is alot of money out there now, it's not real money. While on paper that U.S. economy has done well, middle class wages have not increased- and there the ones that the U.S. depends on to buy stuff.

http://www.cnn.com/2006/US/10/03/Dobbs.Oct4/index.html

So how have they been spending? With rising home values, people have been borrowing against their home to get more money. Now that home values are falling and the bubble seems to have burst, they don't have money anymore. This scenario is explained here:

http://www.msnbc.msn.com/id/15120321/

It'll be interesting to see if this actually happens though. Commercial real estate is on fire right now, and that's usually the first sign of an economy about to tank. For example, if a company is not doing well, the first thing they do is not expand, so they don't look to grow into different office buildings.

On a more social level, the middle class thing bothers me. It just seems as if the richer are getting richer, but the middle class is just getting poorer. It'll be interesting to see if our outsourcing, offshoring, and globalization efforts can keep the U.S. economy afloat even when it's own citizens aren't doing so hot right now.

Sorry for this getting off topic, but I just wanted people to have a better reference than "my cousin at Standard and Paul'" along with some terrible stock advice.

[reaz]

harvey_maway is way off base. First of all, it's Standard and POOR'S. I don't know who that paul guy is.

As far as recession proof investments. I honestly think the best investment may be leaving it all in cash. If you're reading and economics textbook, they'll tell you that large industrials are supposed to do well during a recession, in the marketplace they get dragged down with everything else. If you think the market's going to go down and you want to buy now, just stick it in bonds for a little while. Additionally, once the market drops (bringing the good stocks down with the bad), you can buy the good stocks for cheap. Money markets are good right now, but if the interest rate falls, they'll go down south too.

As far as the market going down, that's an interesting question. While there is alot of money out there now, it's not real money. While on paper that U.S. economy has done well, middle class wages have not increased- and there the ones that the U.S. depends on to buy stuff.

http://www.cnn.com/2006/US/10/03/Dobbs.Oct4/index.html

So how have they been spending? With rising home values, people have been borrowing against their home to get more money. Now that home values are falling and the bubble seems to have burst, they don't have money anymore. This scenario is explained here:

http://www.msnbc.msn.com/id/15120321/

It'll be interesting to see if this actually happens though. Commercial real estate is on fire right now, and that's usually the first sign of an economy about to tank. For example, if a company is not doing well, the first thing they do is not expand, so they don't look to grow into different office buildings.

On a more social level, the middle class thing bothers me. It just seems as if the richer are getting richer, but the middle class is just getting poorer. It'll be interesting to see if our outsourcing, offshoring, and globalization efforts can keep the U.S. economy afloat even when it's own citizens aren't doing so hot right now.

Sorry for this getting off topic, but I just wanted people to have a better reference than "my cousin at Standard and Paul'" along with some terrible stock advice.


Yea. I dismissed harvey's post because it didn't seem worthwhile.

[bender]

I just heard about something called inverse funds. When the market does bad the fund does good. For example, if the DOW drops the fund is suppose to go positive.

[reaz]

I just heard about something called inverse funds. When the market does bad the fund does good. For example, if the DOW drops the fund is suppose to go positive.

sounds awfully like hedgefunds.. except it's probably all shorted stock.

[bender]

sounds awfully like hedgefunds.. except it's probably all shorted stock.


Check out Rydex and ProFunds.

[SIXPAK GQ]

spend less. earn more

[reaz]

Check out Rydex and ProFunds.

looks like they are shorted funds. the Rydex website has a short article on shorting.

after today's rally at the stock market and keeping the fact in mind that the december quarter is usually the strongest quarter of the market it's wise to assume the recession will not happen atleast till next year (quarter).

[jdmdrfitertim]

spend less. earn more

lol thanks for the reminder genuis