With today's unprecedented interest rate cut, the Fed is screaming "panic". U.S. economic recession is not an if statement, but rather reality. Jim Melcher, a respected wall street guru has been calling for this since November. He noticed the head and shoulder pattern forming in the market, and now we are feeling the effects.
What to do? There are two trains of thought. Bonds are going to be very popular for the near term and there are several to choose from, so make sure your investing game plan match what the bond is offering. We will start a bond series soon to avoid the doom and gloom discussions we've had on the market.
The alternative investing strategy is, if you have credit, use it to get a line for alternative investments. You could do quite well with a private loan at prime for $100,000.00. This is what the Fed is hoping will happen out of this recession, new money investments.
What is your investment strategy during a recession? We would like to hear it.
Tuesday, January 22, 2008
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2 comments:
As of last friday I shorted all my positions... on margin.
Will keep on shorting on the way down.
I'm shorting tech stoch that had remarcable earnings last year. Like FSLR, BIDU.
a few mines and finally companies related to the real estate sector.
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