2006-08-03 17:03:44 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Given the basic principle of buy low and sell high, you should not invest in oil. The general premise here is that you are buying oil at an extremely high price. Why would you want to do that? If inflation is high, then interest rates will be expected to go higher, hence bond prices will go down. The equities market will begin to go down as interest rates go up. Depending on the timing, you should time you investments in bonds, equities, and commodites. Use the same principle as buy low, and sell high.
2006-08-03 17:29:20 · answer #1 · answered by J 4 · 0⤊ 0⤋
Your question lends to a two part answer, as those two periods are not always tied together. During wars your best investment is to invest in companies that develope the weapons that are used in the war, as the gov. will be spending billions to replentish supplies as quickly as possible. Also companies with popular products that have history, such as coke and mcdonalds, generally still turn a profit even during hard times. If you dabble in the futures market, oil and natural gas generally rise quickly with political instability because of supply fears, however oil and natural gas are moreso of a high yeild high risk. During times of high inflation however, the financial sector, namely banks are benefiting the most from inflation due to the rise in interest rates. Gold and precious metals are at times appealing in these situations and can arguably be an investment candidate but generally do not retain good yeilds over time. Bonds would probably be a better alternative as they also benefit from the rise in interest rates and are very safe.
All in all the best investment usually isn't the cheapest so don't make a habit of bargain hunting especially during wars and periods of high inflation.
2006-08-04 00:58:21 · answer #2 · answered by crazytimes77 1 · 0⤊ 0⤋
During high inflationary periods - you want to invest in things that never lose value (gold, silver, oil - especially now). You will actually see growth in those investments as the demand for them increase. Check the value of gold and silver (and of course oil). You will notice a sharp increase over the last 1.5 years.
2006-08-04 00:09:31 · answer #3 · answered by Christopher B 6 · 0⤊ 0⤋
Hi , perhaps you can get answers in this website:
http://www.bernanke.cn
a website about bernanke's talk and comment and some review. as you know, bernanke have great influence in stock, Bank, oil price, forex and so on.
Google Luck.
2006-08-04 07:28:27 · answer #4 · answered by home_insurance_expert 1 · 0⤊ 0⤋
Precious metals.
2006-08-04 00:41:12 · answer #5 · answered by Anonymous · 0⤊ 0⤋
gold and commodity, anything you can touch. tangible asset
2006-08-04 01:24:57 · answer #6 · answered by Hoa N 6 · 0⤊ 0⤋