US economy is sagging... What would be the most positive equity or commodity or FX in the medium run?

Question

US economy is sagging... What would be the most positive equity or commodity or FX in the medium run?

Answer 1

gold is the classic hedge to teh falling dollar.

healthcare is expected to continue to do well for the LT as baby boomers get older.   check into homehealthcare...companies like Apria or Lincare Holdings.  also companies selling/leasing durable medical equipment.

you may also want to invest in foreign markets, or very high quality, AAA-rated corporate bonds  Hold the bonds until maturity to lock into the coupon rate.

Also, and i'm just guesing about this, but I'd imagine that firms that derive alot of their revenues from litigation support, including bankruptcy and turnaround work do well during tough times.  These firms includ Huron Conslulting and FTI.  there are more i'm sure.

Answer 2

Hi....

As US Dollar is at downfall, you can make huge profit by other currencies. Like the Canadian dollar rose, as investors' concerns about the U.S financial sector are increasing. Rising concerns were prompted by a Wall Street Journal report stating that the Fed has investigated Lehman Brothers investment bank with in regard to credit issues.



My source is this news i read at:

http://www.finexo.com/docs/tech_analysis...

The dollar's resulting fall contributed to the price of commodities as well as oil prices. Another contributing factor to the rise in oil prices is the U.S.-Russia conflict, as Russia is the second largest oil producer in the world. Canada is also one of the world's largest oil producers, providing the U.S. with the largest supply of oil.

Investors were largely indifferent to the most expected data of the month: Canada's inflation rate. According to this data, the inflation rate rose to 3.4% in July after June's 3.1%, as gasoline prices soared. Yet this rise was highly anticipated, and did not influence the general expectations that the bank of Canada will leave interest rates unchanged.