What is the safest way to invest money, since economy is going down rapidly?

all the experts are predicting dollar is going to lose its value soon.

The economy may have a downturn in 2007- we are at the end of a long bull market as well as a smaller one since July - but the thing that matters more is that anything denominated in the incredible-shrinking-US dollar will lose some value relative to foreign assetts no matter what happens.

There are two very safe ways to invest:

1) Everbank has a CD which you can hold in either euros or 6 other currencies, all of which continue to rise as the dollar shrinks. The CD does pay interest & is FDIC insured.

2)FXE is a currency ETF for euros. There are others for the swiss franc, the pound, etc. They don't move fast but they are steady. It's not insured, but over time, the dollar is only moving in one direction.

3)Treasury bills are the most conservative thing in US dollars - you will get your investment returned but in inflated, smaller dollars than you paid.

Good Luck!

;-)

The economy isn't losing money. The dollar going down doesn't mean you can't make money. Mutual funds are your best bet. Check the expenses.

Not ALL the experts are predicting that, just the ones promoted by people selling gold and other commodites. The best long term investment for the majority of us is the stock market, via Mutual Funds. If inflation goes up, the stock market will follow and our funds will go up too.

I pulled out from the money market and invested in real estate. 2 years later I re-assessed the value and it added $100K. I sold the house and got $125K... more than what I thought I could get. Hope that helps you, too.

EWJ, GLD, EWO, EWW, EWZ, and ETFs that track India.