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What to invest if the US goes into a recession? |
What are some good investments to invest in if the US goes into a recession soon? (stocks, treasury bonds, etc) Generally speaking, about 9 times out of 10, a recession is not good for long positions in stocks. Bonds tend to do well because the Fed cuts interest rates like mad to attempt to get the economy going again. Recessions vary greatly in length from just a few quarters to a couple of years. If it does beyond a couple of years, it is then called a depression. As one responder already mentioned, if you think a recession is in the cards then you want to invest in short positions. Somewhat risky though, because the recession might not materialize. But life is one risk after another. When thing look really gloomy, that is the time to reverse your strategy and go long stocks. That is when the really big money can be made. Gold, gold stocks, stock of companies that sell things people need no matter what the economy is like (Rxs, toothpaste, coca cola, etc.). If you think there will be a recession, then consider buying the inverse ETFs for a short time. QQQQ is the NASDAQ 100 fund. If you buy this, your money is invested in 100 tech stocks. If the market is going down, you could buy the inverse QQQQ which is called PSQ or QID. PSQ goes up when QQQQ goes down. QID goes up 2% when the QQQQ falls 1%. When you buy PSQ, your money is used to buy QQQQ put options, which increase in value as the market falls. Do you mean during the recession of before? During the recession stocks are the best because you'd be buying them low. Did you ever hear buy low sell high? Yes that means buying them when no one else wants them. Just be more careful, and invest in something with profits and lower debt. Only buy gold if you think cash money will become worthless. Gold has poor historical returns. The stock market is not going into a recession... |
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Some suggestions for you to research. XLE, an ETF that tracks the big energy companies listed on S&P 500. APA, an attractive oil drilling and exploration company. GRP, oil drilling equipment... 1. Define the risk you are willing to take. 2. Start small with investment funds (not stock market). 3. Buy the funds accordingly to the risk you defined, their defined risk, their current evolut... Initially should have started this note with the following advice about bonds that I gleaned from Money magazine over the years . -- Factor in fees as part of determining which funds to buy. ... First u have 2 decide how much return u want in a year? Suppose u r willing just 6 % return on ur investment then u invest in govt. bank deposits-these r totally safe & liquid. But if u want ... Not unless you are retiring tomorrow. #1, you wouldn't want to sell out of stocks right now anyway - you'd be locking in a loss. Investing isn't complicated - buy low, sell high. THe... right now the conditions of the market are unstable so you are very smart to thing about cash investments. the value of a bond goes down as interest rates go up... intrest rates are going up so ... a message for amy22 if you set up a regular standing order then the minumum buy at any one time is 拢50. also from the NS+I website you have to have a premium bond holders number, which means ... I too sold my business and have done well investing the proceeds. One of my favorite sources of information regarding stocks is thestreet.com and all of Jim Cramer's books. The subscription to... |
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