Although we don't think this "recession" is in any place close to over and will get best any time soon, it would be wise to watch these forms of investments very closely. If or when the double-dip comes, be prepared to jump on these investments like a rabbit on viagra because when the dust settles, these areas will be where the parties at.
Gold, Energy, Food and Land
MOS
Investors who have survived the deepest stepping back in decades have witnessed a dollar collapse, a housing shop collapse, government defaults and a stock shop collapse. After the stepping back started in 2007, everybody is mental the same thing, where do we invest our money now? In as early as 2005, a monkey could close their eyes throw their money into stocks, bonds and real estate to categorically profit. The buy and hold strategy was lucrative and quite accurate. Most sell investments had a perceived security of essential and long term growth. From March 6th, 2009 to the second quarter of 2010 we witnessed a clear bear shop rally, meaning we had a 30% salvage in stocks overall, but still down 30%-40% from pre-recession highs. We are all still trying to recover back to even.
So what is an investor to do?.... Let's start by decreasing possession of pieces of paper like stock certificates, bond certificates, mortgage documents. Over the arrival decade smart investors will be a shifting from paper assets to corporal assets and commodities. If person could find a good way to invest in clean drinking water, that would be a good idea too!
It's time to invest in Gold and Silver, Energy, Food and Land. These investments are based on earth produced corporal objects... I know that sounds like weird description, but think about it. They are in high demand, they are finite (will run out) and are increasingly harder to produce.
Gold and Silver
Gold and Silver represent the corporal forms of money, because they are resilient to financial collapse and will be a store of value for your savings. Gold and silver stocks are highly volatile and will fall with the market, but they can turn and start increasing as markets fall. The key is to find increase companies. Canada dominates gold mining and exploration, being a commodity based market.
Physical Gold is great if you can afford it, because it will protect against inflation and has done well over long periods of time. See our post on "Gold is Money".
As you can see from the chart above, corporal gold has been on a tear since 2000. Regular habitancy in the growing middle class of Russia, India and China are buying gold jewelery and gold investments at an alarming rate. It is not regularly a good idea for the mean investor to buy when a chart is at such a peak, but gold prices can continue to rise on fear. ,200 may come to be ,800 in the next few months. corporal Gold can typically have corrections between 10% and 25%. Buy as price drops and then buy more regularly.
Some small and intermediate gold stocks for the increase investor:
Yamana Gold (Auy), Jaguar Gold (Jag), Detour Gold (Dgc), U.S. Gold (Uxg), Eldorado (Ego), Iamgold (Iag), Lihir Gold (Lihr)
Juniors (Tse)
Minera Andes Inc. (Mai), Terrane Metals (Trx), Claude Resources Inc. (Cgr), Atac Resources Ltd(Atc), Rubicon Minerals Corp (Rby)
Junior Gold stocks are often long term holds and are also high inherent acquisitions by larger companies.
Silver Stocks to look at:
Silvercorp Metals (Svm), Hecla Mining (Hl), Silver Wheaton (Slw)
Energy
Oil is the whole one vigor source in the world and consumption will continue to rise with the rise of China, India and Brazil. Look for oil to push for 0+ a barrel. This is almost a no brainer, however, you cannot just buy mature Oil stocks and expect a return, because they are volatile and don't offer much increase for the mean investor. To invest, you must invest in Oil Futures and Options. It took me years to understand that a Regular investor can buy oil futures. You will have to sign up with a broker that has e-mini futures like optionsXpress.
Oil Futures - miNy Crude (Qm)
Oil Etfs
Hori. Beta. Nymex Cr. Oil (Hou)
For stocks, vigor companies that yield natural gas, heating oil, hydro and oil delivery pipelines yield great returns even after the recession.
Food
Food is our lifeline, literally. When you invest in Agriculture, farming and processing after the recession, you're essential betting that we will continue to run out of food and consumption will be more than demand. Here are a few companies.
Exchange Traded Fund:
The shop Vectors Global Agribusiness Etf (amex:Moo),
Fertilizer companies:
Potash Corp (Pot), Agrium (Agu), Mosaic (Mos)
Real Estate and Land
Owning asset in areas that will grow is a great way to invest for the future. A enterprise can go bankrupt, jobs will be lost, money can be printed, however land cannot be reproduced, it is finite. The stepping back has brought real estate prices down in any parts of America and the world, not quite in Canada though. The key is to improve your horizons past your own city and assume that the shop has some downside risk.
We are not affiliated with nor do we offer this record as a solicitation to buy the above mentioned securities. Please do your investigate and/or perceive an counselor before production a great speculation decision.
- Ato Mensah, MastermindGrowth.com.
4 Safe Investments After the retreat MOS
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