Assuming the US economy does dive into a recession, then what investments are good? For people who saved during the boom, I would think a recession would be a good time to pick up things like real-estate for pennies on the dollar ? On the other hand there is no guarantee real-estate will rebound, so you could be stuck?
If the US is going into a recession, convert all of your investments to cash. Then when things really look bad, buy stocks, bonds, and real estate.
-- Ron
How about SH?
Pete
Financial service companies have very low prices now. Buy low, sell high.
The oil bubble is just starting to pop. If there is a world recession, demand will go down. Oil is back inthe $80s again and could fall substantially lower.
I am personally skeptical about market timing, and trying to guess when a recession is going to begin and end is one form of market timing.
Remember -- the S&P went up during five of the last nine recessions.
What I'm doing is sticking to my asset allocation: If the next time I rebalance my portfolio, stocks have gone down since last time, I'll buy more; if they've gone up, I'll sell some.
"Andrew Koenig" wrote
Indeed. Send 'em to that great Vanguard article on historical recessions you found. (Again, at the Vanguard site, type in "recession" in the Vanguard search engine, and it comes up.)
This is getting so much attention here it ought to be an FAQ. Something like: "What to do when the economy looks bad?"
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