How can i profit on the "recession"?

Question

ive been trying to think of some "sure thing" stocks that will bounce back after the economy recovers? i figured I'd stay away from pepsi and coke because the price of corn should keep the profits down.

Answer 1

mukwonago53149 is right.  the stock market is artificially low for many companies.  Anyone who can afford to buy now is buying at a low price.  It may still go lower.  However, you don't actually lose until you sell, so don't sell until it goes back up.  The best stocks to buy LOW are pharmaceutical and biotechnology stocks.  They are riskier than many investments but the payoff is really good when they get a drug on the market.  I have about 45 K in Panacos Pharmaceuticals (PANC) right now and it is worth about 32 K as of close today.  However, they have a new drug ready to go into phase 3 clinical trials that treats HIV and it will probably go up 10 times or more if it gets on the market.  Applied Neurosolutions (APNS) is at about 1/3 of what it is worth and it is probably going up to 20 x when Eli Lilly pays them the first milestone payment on any new drug they develop for Alzheimer's disease.  E-mail me if you want to kick around some ideas.

Answer 2

After a crisis of confidence (i.e. the credit crunch) it is best to be a "contrarian". I therefore think it is a good time to look at US stock markets because:-

1) The US stock market is cheap at these low levels (i.e. having sold off for a year).

2) The dollar is very cheap too and in the longer run we will see a significant rebound...

3) Companies earn money from selling products and/or services - These earnings rise with inflation so stocks are better than bonds when inflation is a risk...

4) If you want to chose a sector to go for rather than the whole market index - I think banks are ultracheap because sentiment is appalling towards them. A lot of the losses banks have announced are so called "write offs" or "write downs", however many of these losses will eventually be "written back" causing huge profits... Even the Bank for International Settlements (BIS) which serves as a bank for central banks and is very conservative agrees that the write downs are overdone.

For timing wait until mid to late July and then go for it. Good luck!

Answer 3

http://www.youtube.com/watch?v=N6V5ym9kx...

Answer 4

toilet paper and feminine paper products always sell.

Answer 5

Well, first we need to understand why the economy is in a recession.  The general concensus is because of the faulty loans by the sub prime companies and the price of oil.  So, when you take these two factors into consideration you should arrive at the common denominator - the U.S. dollar.  The economy, stocks, bonds, oil, real estate, merchandise, and other products or services we need to operate our society are based on the dollar.   If you have been reading the headlines or watching the news, you would read and see that the cost of everything is going up (health care, gas, food, education, etc.)  and everything is going up becuase the dollar is losing purchasing power.  That's the reason your parents couldve had a "night out on the town" with just 5$ back when they were young.  Today, that wont even fill your tank!  So, to answer your question, obviously, investment vehicles that perform contrary to the dollar will do very well now.  As inflation eats away at the dollar, real estate, oil, gold, and silver will go up - way up!  This is because these are considered "hard assets".  These are hard assets because as the dollar softens and inflation rises, these asset classes will go up in price.  They will "ride with inflation" so to speak.  As always, I suggest that you invest in your education.  You could expect oil stocks, income-generating real estate, gold, and silver be solid during these turbulent times.  Hope this helps!  Later!!!

Answer 6

Invest in solid companies that are really beaten down because of the current market psychology, not because they deserve to be beaten down.  Which stocks are those?  I have no idea and neither do you.

Therefore, buy an ETF that invests in all of them such as DDM.

Answer 7

What recession?  the definition of a recession is two consecutive quarters of negative GDP growth.  Despite the media and the talking heads constant drumbeat of recession talk for the past 2 years, we still haven't even had 1 quarter of negative GDP growth, never mind two consecutive quarters.  In fact, the first qtr GDP was just revised upward to 1% growth.  That's anemic growth, but it's still a positive number.  There is no recession. Not yet anyway, much to the dismay of the media who would like to blame Bush.

Answer 8

Allthough down times including recessions and depressions have been the actual target of buying times to any investors alike, we should also be mindfull of the fact that the world is now going through a new phase of the "globalizing economy".  It's not a new thing that the world economy has been interweaving and evolving itself but the inevidable truth for one is the fact that "the world power" has been being in the process of being transfered into the hands of a different country.  By that fact alone I believe that it is the main reason why the anticipating 2008 recession has been breaking records in the history of the US economy.  What we are about to see more of will mostly be "all-times" records in the near comming future.

I believe that the white house is endorsing the statements I am making here by the way they are handling situations in desperation rather than with confidence.  Since when did you ever heard of a stimulous payment?  Alot more to see on this table here.    

Like you, I believe that the US economy will have to rebound at some points but unlike you, I don't think the time is is going to be as conventional to be soon has it has been experienced in the past.  Personally, I think that the rebound is not going to take place before 2015.  Yep, we are into this one for the longer haul.

I can go into more of the supporting background to my statements but I'll just get to the bottom line here.    

I wouldn't want to discourage you from doing what you believe because not all companies will be devasted by this new transition but my bottom line here is for everyone to be cautious for this time has been bringing unusual records of all-times.  The hope is not all bad however because some companies especially the globally grounded ones will be the main beneficiaries to this new economical form.  Alot of this companies are US born.  They are the reasons why we can have hopes.

In all you do, just be patient thru this unusual transition.