It depends what you mean by weak market (weak economy or stock market). Overall, the movement of the stock market is correlated, but there are some investments that are supposed to be anti-cyclical, meaning they move opposite to the larger market or are safe havens from downturns in the economy. These used to be the "consumer staples", like food. Also, gold used to be an investment that as the dollar and economy softens, investors would buy.
However, in recent history, gold prices were up despite dollar movements and are pricey and things like energy have also increased. There may be less opportunity to invest in these.
The other thing to do to maximize profits in bear markets is to invest in a Bear Market Fund or a Short Fund. These are very risky, as they bet against the movement of the stock market, but will increase as the market decreases.
Oftentimes, these funds are used for diversification or as a hedge and not for pure profit.
You can visit:
http://bearmarketcentral.com/mutualfunds.htm
to find a listing of bear market funds.
2007-07-27 08:57:15
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answer #1
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answered by PK 5
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A company that is subject to a takeover or is being stalked will often hold its price but generally in a weak market all stocks fall although some less than others.
Please remember that markets are erratic and irrational to you and I. They are not human but we try and humanise them and we lose when we do that.
2007-07-30 23:35:07
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answer #2
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answered by katerschenko 3
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I have a simple answer. Procter and Gamble. People always flock to P&G during tough times. They're a stable company that people know isn't going anywhere. Plus, even if the world falls apart, we still have to buy toilet paper! See my point?
My point was proven yesterday. When the market was tanking, P&G was trading for higher than open. Know who else that happened to? Nobody in the S&P 500 to my recollection!
2007-07-27 09:39:22
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answer #3
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answered by manabell 2
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In a slow economy, you want to move to companies that provide the "essentials" in life. Things that people need everyday regardless of the economy. Things like P&G are good. Others include Pepsi, Coke, BUD, Colgate, General Mills, and Kellog. Basically things you have to buy week after week in the grocery store.
Also, drug companies are pretty economic resistant.
2007-07-27 19:04:35
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answer #4
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answered by A5150Ylee 4
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look up stock symbol DOG. Any contrary investment will do the trick.
2007-07-27 09:46:17
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answer #5
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answered by JJ 2
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There are indeed a few. Not many, but a few. Here is a list of some of them.
SFK, SH, SIF, SJF, SJH, SJL, SKF, SKK.
SKF is up 1.86 today.
SH up 1.19
sfk up 2.11
etc.
2007-07-27 10:59:54
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answer #6
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answered by Anonymous
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I found this link for you, but its not that helpful. Check it out.
http://www.investopedia.com/terms/c/countercyclicalstock.asp
Examples of employment agencies that might be counter cyclical include: Kelly services, Manpower, etc.
2007-07-27 08:50:09
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answer #7
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answered by hottotrot1_usa 7
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If I knew that I wouldn't be here!
2007-07-27 09:40:57
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answer #8
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answered by DanKoko 3
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