Why everyone is now talking about the double dip recession and the massive stock decline that is going to happen soon? There are many indicators that are pointing towards that direction. The indicators are obvious, global shipping is grinding down to a halt, consumers are losing confidence, manufacturing is slowing down and even China’s super hot economy is now showing signs of slowing down.

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There are many other indicators that are pointing towards the recession becoming double dip soon and the stock market again becoming bearish. If you have been following the DOW, it has made huge swings of 1,000′s of points in the last few weeks.

Sandard & Poor’s data shows that the following sectors outperformed the market even during times of recession;

Alcoholic Beverage Makers not only survive the recession better 80% of the time but data shows that these stocks rose by about 8% during those recessionary times .

Household Product Manufacturers also do better during times of recession and posted a gain of 1.8% during the previous recession .

Tobacco Companies posted a gain of 9.6% and beat the market almost everytime .

You profit both ways. If you have been a traditional buy and hold investor than you should think about changing your investment style. What you need to do is to become a short term investor who looks to profit from the volatility in the market. Dan Zanger had turned his $10,000 into almost $42 Million in just under two years using momentum trading strategies when everyone was crying about stock market crash.

You can also use options strategies to profit from the market no matter what it does goes up or down. So, there are many sectors of the economy that traditionally perform well during the times of recession. You can invest in them. You can change your investment style a little bit and try momentum investing. You can invest in options. There are many ways you can still profit from the recession !

house moving How can you make sound investment decisions when you don’t know investment basics?  How can you pick investments that are appropriate for your circumstances when you don’t know what your basic alternatives are?  Relax, I’m going to simplify the big picture for you.

In my mind’s eye, I place all of the investments in the world into one of four categories, commonly called asset classes.  Let’s say you inherit $100,000 and you want to invest it, but you do not understand investment basics.  How do you start your search for the best investment(s) for you?  Start here, by first narrowing your choices down to four.

juegos mario CASH EQUIVALENTS and FIXED ACCOUNTS…for money you need to be safe.  If you need ready access to your money put it into cash equivalents, commonly called just CASH in the investment business.  Examples include bank savings accounts, T-bills, and money market mutual funds.  These investments offer high liquidity, and pay interest.  You can get your money back quickly and easily, without penalties for early withdrawal.

If you want to earn a higher interest rate and do not need super liquidity, look into fixed accounts.  These are also safe investments, but may have penalties for early withdrawal.  Examples include bank CD’s, U.S. Savings Bonds, and fixed annuities.

BONDS…if you want to earn higher interest income than you can get in cash or fixed accounts.  The value of a bond investment will fluctuate, so there is risk here.  Examples include U.S. treasury bonds (not to be confused with savings bonds), corporate bonds, and municipal bonds.  Bond mutual funds are available to fit most any bond investor’s needs.  By investing in them you own part of a professionally managed portfolio of bonds.

home selling Bearing in mind that loans for investment properties are more stringent than loans for personal properties and generally require a better credit history and a more substantial down payment, it may not be possible for everyone who is looking to invest to secure one that will cover 100% of the costs. Even if that proves to be the case, there are still many other property investment finance opportunities.

Seller’s financing, for example, where the seller assumes the debt of the property (to a percent that is determined by him and the investor) is more and more frequent in the current real estate market and can be used to either cover the percentage that the mortgage doesn’t or even to replace the need for one if the conditions are right.

Which funds should I hold in what proportion?

Keep it simple. Start by concentrating on learning all you can about mutual funds. There is a fund to fit virtually every investor need. Once you know funds, you can build your own portfolio of mutual funds You can be published without charge. You can to republish this article in your website or blog. Please provide links Active.