Best options for the impending recession? (1 Viewer)

geauxboy

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I know there are two threads that already touch on many subjects related to the recession, but I want this one to more or less focus on our options if/when this happens.

Speaking for myself, a man that ain't got squat saved and a job that isn't worth the time or effort, there are some things I'd like to know to be better prepared.

Whenever there is a recession, some get richer and the rest go broke. Now, I understand that you need a nice chunk of change in order to benefit from the recession, but what about those that don't have it?

Realistically, what is the best way to position myself to be able to bear this ignorance? Gold? Real estate? Stocks (after they plummet)?

I'm not looking to get ridiculously rich even though it would be nice, but I just want to be able to take advantage of the recession the way the fat cats do. Who am I kidding? I'd be happy not feeling this recession the way people less prepared will feel it.

I wanted to use the money that Bush is so generously giving us by going on a vacation out of the country, but the more this recession talk gets more realistic, the more I'd rather put it into something more substantial.

What are some viable stategic options?
 
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gboudx

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Google around and see if you can find anything about how Warren Buffet approaches investing during a recession. When the market began tanking in 2000-2001, I moved a chunk of my 401k into Bond funds. Those outperformed everything else in my portfolio. I'm not saying that's what you should do, just that was my experience during that timeframe.
 

bclemms

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It really depends just how bad things get. If we see a short lived recession without inflation then the best thing to do is leave your money in some type of savings and buy stocks when they are low.

If inflation continues to be a problem then gold or metals would be a better place to be. I still really like gold but over the last week it has been tracking the dow and that scared me away. I will probrably regret it and may buy back. Gold could go to the moon if the economy really slows down and inflation continues to be a problem. However, the dollar just doesn't want to break resistance against the Euro at 1.5. The ECB refused to cut rates in Europe and if they hold their ground and the fed keeps slashing rates then the dollar could really start to spiral downhill and gold may be one of only a few safe havens.

Bottom line is everything is risky because the credit problems can run so deep in an economy and with the dollar being at all time lows it magnifies this problem. When the financial institutions, currency and monetary policy all have major issues it can collapse empires.

The good news is the stocks have stabalized for now but more bad news is going to come because there is still $240 Billion in risky debt that nobody is willing to touch. This means a lot more big write downs are on the way.
 

SaintAkira

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I, by no means profess to be a "money man" in terms of investing and whatnot, but from what little I hear, I hear good things about gold and metals.

Especially curious about silver, as it is cheaper than gold, but also seems to hold its value well. Any insights?

ps I also heard something, somewhere about Bill Gates owning an absurd amount of silver. Anyone else hear something like that?
 
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geauxboy

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Well, in my position, I doubt I could buy enough gold to make a significant difference. Bonds and low priced potential stocks may be my only way to survive/benefit from this.

I have heard some talk about silver possibly being the "new gold". Cheaper, but holds it's value just like gold. It could be a more viable option for those that don't have much to play with, like me.
 

Jeff Miller

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We are a consumer drivin economy. It operates best when people are spending money buying goods.

I say we need to shift away from taxing buiness and profits on investment. This should level the global market playing field with regard to manufacturing, a incentive i would speculate would being more manufacturing back State side. This creates more jobs for people that will then turn around and buy goods.

Then taxes could then be shifted to something like a 1 % national sales tax. That way your not taxed on your income, freeing up more cash for either investment, or spending and you are then taxed on your consumption.

In my mind this is the best way to go.
 
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geauxboy

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Anyone have the patience to help a severly economically challeged bafoon? If so, please write in crayon.

I would investigate more thoroughly, but this pc is entirely too slow at work. I just checked scottrade while checking another thread and I looked up silver. Of course, I don't know the ins and outs of how to look at it correctly, but I pulled up the first company offered. American Silver Mining Co (ASLM) at $1.06. I then pulled up Arian Silver Corp (ASLRF) at $0.42.

Is that just what the company/mine is worth?
 

saintfan-n-alex

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is buying gold and silver just like buying stock? or do yall have chests buried in the back yard? lol - seriously i an curios -
 
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geauxboy

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http://www.kitco.com/market/

I went here. Need to explain it all in crayon to me as well.

If I have ANY clue as to what I'm looking at, silver closed ($16.30) at a price I can afford. I wouldn't stay in it for the short term. It would be long term if anything unless I set a nice ceiling to sell.
 

SaintAkira

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If I have ANY clue as to what I'm looking at, silver closed ($16.30) at a price I can afford. I wouldn't stay in it for the short term. It would be long term if anything unless I set a nice ceiling to sell.

I'm reading it the same way FWIW. And that's about a price range I can swing. Any money gurus to enlighten us out there?
 

Paul

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It really depends just how bad things get. If we see a short lived recession without inflation then the best thing to do is leave your money in some type of savings and buy stocks when they are low.

If inflation continues to be a problem then gold or metals would be a better place to be. I still really like gold but over the last week it has been tracking the dow and that scared me away. I will probrably regret it and may buy back. Gold could go to the moon if the economy really slows down and inflation continues to be a problem. However, the dollar just doesn't want to break resistance against the Euro at 1.5. The ECB refused to cut rates in Europe and if they hold their ground and the fed keeps slashing rates then the dollar could really start to spiral downhill and gold may be one of only a few safe havens.

Bottom line is everything is risky because the credit problems can run so deep in an economy and with the dollar being at all time lows it magnifies this problem. When the financial institutions, currency and monetary policy all have major issues it can collapse empires.

The good news is the stocks have stabalized for now but more bad news is going to come because there is still $240 Billion in risky debt that nobody is willing to touch. This means a lot more big write downs are on the way.
This is a good observation and information.

Or, you could get a gun, mask, and escape route. Some duct tape will make them take you to the house. - Jay-Z :hihi:
 

Jonesy77

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Buy soy.

If you seriously think there is going to be a recession, you could also try targeting some industries you think are overpriced and sell short. This is not for the faint of heart since in theory there is no limit to what you can lose by selling short. But it is one way to make boucoups of money in recession.
 

efil4stnias

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as for your original question...the goverment thinks the best option is to give everyone but me $600, charge me Alternative Minimum tax and watch me squirm because now I cannot afford to save/invest a large chunk of $$$ becasue it would not be readily availabe to me in the event of an emergency.


Precious metals abound. I know there are mutual funds that deal exclusively with precious metals
http://biz.yahoo.com/p/tops/sp.html
 

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