How do I protect against recession?

[Kidlicious]

Originally posted by el freako
If it's a Japanese-style stagnation you are afraid of you could buy 5 to 10 year government bonds.

as the currrent US bond rate is around 4% then if there was a japanese deflationary scenario bond rates are likely to fall to 1% - that would quadruple your investment.

Would your return be that high?

[Japher]

Bonds are not a good buy right now because the market is still recovering. It is a good idea to buy bonds in a good market to protect against a bad market however... Gold is a good buy as it counter acts the market... Still, we are still in a 'down' market.

You could also check out hedge funds if it is just the deflation of the US dollar you are worried about.

Question: Investing in gold. Does it just mean buying actual gold, or could you just buy Futures?

[Kidlicious]

Originally posted by Japher
Question: Investing in gold. Does it just mean buying actual gold, or could you just buy Futures?

Futures would be just as good, but I think most people buy actual gold for a long run investment.

[Japher]

Really? I never think of anything I buy and take home as an investment. I don't even posses my stock certs... Actually, I have a few, but I don't even like holding my savings bonds.

[Spiffor]

Originally posted by Japher
You could also check out hedge funds if it is just the deflation of the US dollar you are worried about.

Hedge funds are surely the best investment to do if you want to feed your (grand)children when the whole economy collapses

Lancer, if you want to save money for a traditional economic downturn, why don't you simply put your money in the bank? Unless there's a major economic collapse that wrecks everything, the Bank is one of the safest places out there to put your money: interest rates are always higher than the inflation, meaning that you cannot possibly lose money, unless a 1929-like crisis shows uo.

[Kidlicious]

Originally posted by Japher
Really? I never think of anything I buy and take home as an investment. I don't even posses my stock certs... Actually, I have a few, but I don't even like holding my savings bonds.

You keep the actual gold to hedge against a govt collapse. Otherwise govt bonds are probably the best investment in a downturn.

[Japher]

On Hedge Funds:
Hey, I said just check them out. They ARE extremely risky, but they are good way if it is only this(US) economy one is worried about.

Bank accounts are only giving about 4% right now, and inflation is at 3%. Yaay! 1%! Safe, gaurenteed.. sure, but your making only 1%.

[Spiffor]

Originally posted by Japher
Bank accounts are only giving about 4% right now, and inflation is at 3%. Yaay! 1%! Safe, gaurenteed.. sure, but your making only 1%.

I could make 0% for all I care, if I devote a part of my savings in simply being sure to have money in times of crisis. Actually, if I was fearing a major crisis, I'd buy gold even if I expected it to lose value, simply because gold will keep being worthy of something the day people wipe their ass with 500$ bills.

[Kidlicious]

Originally posted by Spiffor
Actually, if I was fearing a major crisis, I'd buy gold even if I expected it to lose value

If all currency became worthless I think gold would become more valuable because the demand for it would increase. It's value would increase because it would be used for exchange and store of value, instead of just a store of value.

[Brundlefly]

Re: How do I protect against recession?

Use Rogaine.

[chequita guevara]

The price of diamonds is going to fall as flawless syntheitics become available. Two companies are doing this now, and it won't be long at all before significant quantities of them hit the market to make the price of them fall.

[chequita guevara]

Re: How do I protect against recession?

Vote against Bush.

[Ogie Oglethorpe]

Land

[Japher]

Lancer has land, I don't see why he just doesn't use it as his soul medium. There is a lot you can do with it.

[Provost Harrison]

A rare metal such as platinum or perhaps palladium. Remember their value does not just lie in jewelry but in their utility as catalysts in the chemical industry.