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I believe we are heading for a recession in the next year, or at least very slow growth. With the housing market soft, what should I invest in to look for growth.

I would figure investing in companies or sectors that people must buy, like food staples or household consumables like paper. Any ideas?

2007-08-27 11:50:34 · 10 answers · asked by Uncle Pennybags 7 in Business & Finance Investing

10 answers

Bonds rally at the start of a recession as interest rates are cut to spur the economy. Those who were in bonds in 2000 were happy campers in 2001 and 2002.

Consumer staples do well, health sector does well, but I wouldn't rush to buy those just yet. Stocks could get cheaper. And that, incidentally, is the use for cash. Raise it now in anticipation of a greater decline in stocks so you can buy 'em when nobody else wants 'em. Cheap. Don't raise cash just to sit on it; real inflation is 6% or more so no money market fund is going to give you a positive, real return.

2007-08-27 15:52:24 · answer #1 · answered by Andy 3 · 1 0

Firstly, we are technically not in a recession. A recession is defined as two consecutive terms of negative growth in GDP (There are four quarters or terms in one fiscal year). We go into a recession when consumers (us) stop spending money. This is why when we watch the news about the economy, a lot of the time they will talk about retail corporations and their sales figures. When we stop spending income, the economies growth decreases, or even becomes negative. I think the current state of the economy has a bit to do with the war in Iraq, but really that is being beaten like a dead horse. People will come up with reasons for why the economy me is getting worse, but no single thing can accurately determine the causes of these short run losses. It's called the business cycle. If you look at a chart of the nation's GDP from the 1900's to now, it looks like a roller coaster. We are always going up and down. We had a recession in the 2000's and look where we are at financially, still the richest country in the world. These drops are natural. Interestingly enough, when you look at the GDP from the 1900's to now, you will see that every time we have a war, our GDP goes up. Wars make money and creates a vast quantity of jobs, unfortunately. :(

2016-04-02 02:24:18 · answer #2 · answered by Barbara 4 · 0 0

If you think the economy will go into a recession, go into cash. And you may invest some of your money in an inverse fund such as DXD, SDS, or QID. A lot of people are suggesting WalMart, ProcterGamble, GE, Target, etc. Just take a look at how these stocks performed during the recessions in the past. During the recession of 2000, for example, they all took a dive. During the crash of 1987, they all went down a lot. So, you would have been better off if you just stayed in cash...

2007-08-27 13:32:18 · answer #3 · answered by frozen555 5 · 0 0

The safest play is cash, but if you want to invest some, put it in consumer staples. People will still need shampoo, toothpaste, cereal, and shoes. A company like Proctor & Gamble might be a good one for you to look into. Maybe even discount stores like Target or Wal-Mart.

2007-08-27 13:05:52 · answer #4 · answered by CCOC 1 · 0 0

traditionally.... you're right on with consumer staples.
PG, CPB, HNZ, KFT should see minimal effect on their business... as everyone continues to eat and bathe...

also BUD, SAM ... are another common play.... sarcastically that in a recession people like to drink MORE... and cannot afford mixed drinks/wine etc... so Budweiser is popular.

stocks like Altria and tobacco companies... smokers still need smokes.. and mo is pretty diversified.

GSK,PFE, MRK, BMY.... most people will spend their last time on their medicine... it makes the pain go away.... employed or not.

I'd avoid paper... as it is more cyclical than you may think... just like steel and aluminum etc.... a booming economy uses more paper.


thats a few thoughts for ya

2007-08-27 13:39:04 · answer #5 · answered by Ryan S 3 · 0 0

If the economy goes into recession, go into cash.

2007-08-27 13:01:34 · answer #6 · answered by William H 5 · 1 0

"In a volitile market, only stable invest ment is pr0n"

- Trekkie Monster, Ave Q

2007-08-27 12:42:10 · answer #7 · answered by saberhilt 4 · 0 0

10% store-able food

20% cash

30% high dividend paying utilities.

20% Physical Gold//Silver.

20 % land that can produce food or income.

Percentages could vary.
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2007-08-27 13:43:20 · answer #8 · answered by beesting 6 · 0 0

prophylactics their always going in the hole.

2007-08-27 11:59:20 · answer #9 · answered by buzzwump 3 · 0 0

cash and commodities

2007-08-27 13:03:46 · answer #10 · answered by Smartass 4 · 0 1

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