The Australian dollar is the worst performing currency of the year, thanks to all the recent turmoil. But its economy is extremely strong so there is no real reason for that. I would invest in the AUD.
Bank Shares: No
Gold: Trading at a high now
Bonds: As the equity market goes down, bonds go up
Stocks: Some good values out there. But look at cash on hand. Stay away from the retail sector and focus on health care.
Now, if you have more than 100,000 there is some great deals on real estate.
I’m not sure about real estate. Most of the people I’ve heard or read talking about it believe that there is another wave of bad mortgages that is just starting to hit…
As far as the US, the subprime mortgages that are going to go bad have pretty much all gone bad, but now there is a huge wave of “alt-a” mortgages (people with excellent credit that took 3 or 5 year ARMs, interest-only loans, or other alternative mortgages) that are coming due, and because their equity positions are wiped out (and in some cases, hundreds of thousands of dollars under water), an increasing number of people are simply walking away rather than refinancing, since banks are reluctant to write down mortgages for people that don’t have dire financial problems.
Many of the pundits seem to believe that real estate will continue to drop in most markets in the US for another 10-24 months. Of course, we won’t know when it bottoms out till afterwards, but I’m inclined to wait a little bit.
Any of the big safe Blue Chips that are undervalued from panic selling are probably good buys for Long Term positions. I would agree on Apple, and would also suggest Research In Motion - Makers of the Blackberry (RIM on the TSX)
My first reaction would be to lock it up in a vault. $100,000 would be an awful lot of money to lose if any investment went awry. So I guess I’d horde it.
But my second reaction would be to buy into something that people either totally need in order to live or need in order to escape. So, that would be booze, food processing plant, toilet paper, stuff like that; a winery be great! Or a chain of sex clubs, strip joints and porn sites. Or a movie studio like Marvel.
Bjorn: Pretty scarey news indeed. I cannot begin to tell you how frightened I am for the entire world, not just because of the economy, but for others that could happen as a result of desperate times.
Foreclosures that can be used for rental property. But you are going to need a minimum 20% down, and most are going to want 30-40% down to get a loan on a secondary rental property.
Stocks- Apple, RIM (Research in Motion- makers of the Blackbery), Chesapeake Energy and NetGear.
[QUOTE=Titanmen;26317]Foreclosures that can be used for rental property. But you are going to need a minimum 20% down, and most are going to want 30-40% down to get a loan on a secondary rental property.
Stocks- Apple, RIM (Research in Motion- makers of the Blackbery), Chesapeake Energy and NetGear.[/QUOTE]
If one is betting that the dow is going to tank, then hedge some out with SFK or bonds.