Localfund.com - All about Fund and Investment
*Home>>>Bond Investment

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.

You might consider investing in Chinese stocks. I doubt that a recession here will have so great an impact there if you stick to basic industry. That country is where the U S was in the 40s right after the war. That was the greatest investment opportunity in U S history. Learn from it. Another option is the oil industry. A recession will have some effect on the industry, but oil is better than gold today as a storehouse of value unless the world converts to the Amish religion.

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.

You probably know about the Dow Industrial Average and the S&P500 index. They have inverse funds also. If you want to make money while the Dow falls, buy DOG or DXD. Both of them will go up if the Dow falls.

If you want to make money while the S&P500 index crashes, then buy SH or SDS. Make sure to buy these BEFORE the market crashes. If you buy them after the crash, you may end up losing as the market turns around...

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...
The cause for the stock plummet last week was in the finance sector. Every other sector of the market has been strong. If there had been a recession you might want to think about short selling any stock that is in the weakest sector.

If you don't like that type of risk then your best bet would be to find a high interest CD account for a short term investment such as 3 months. Don't lock your money in completely because rates might increase or a better option might come around...Do not invest alone during a recession unless you are 100% confident in your abilities.

A recession market is very volatile and if there is a disruption in one sector others might be effected.

Tags
  Business Investment   Business financing   Business Invest   Business Debt   Bond Investment   Angel Funds   Alternative Investment
Related information
  • I Want Power鈥hat Is The Best Way To Invest In The Energy Sector?

    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...

  • Guidelines to beginners for buying stocks and bonds online (in euro)?

    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...

  • Im looking for a good book on bonds or fixed income assets?

    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. ...

  • How to invest in mutual funds, stocks, bonds, or Treasury bills and securities?

    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 ...

  • Will stocks crash?

    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...

  • Tell me about CDs, bonds, and savings accounts?

    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 ...

  • To amy 22 premium bonds dont start at a 100 we bought some for 50euro?

    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 ...

  • Best way to utilize money received after business purchase?

    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...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster