We give in a difficult economic phase. The perception of the general economic growth and financial well-being is very negative. The income from the Standard and Poor's 500 index are probably the worst record since 1991. Many investors stay on the edge now with cash.
Since most people are concerned about the difficult times before emerging, there are many strategies ensure that investors can follow to protect theirInvestment.
Non-cyclical stocks
These provide an excellent defense against economic difficulties. Most important in this category are food, food, energy and healthcare stocks. These are the things of primary necessity. The people they have to buy in any economic conditions. The demand for their products is bound to remain high. Thus, investment in this type of stock is an excellent safety net. Remain a good part of a portfolio should always be invested inthese non-cyclical businesses.
Not only are these stocks a good defense against the present economic recession, they are also a long-term hedge against inflation. Many of them can even record growth in bad times. In normal times are likely to realize double-digit growth.
Insurance Sector
As the basic needs of life one is always insurance. Life and property remain in demand even in the worst conditions. Not only do theyweather slowing business, they also provide large payouts. Stability in their prices has always rendered them quite popular amongst the investing public.
Banks are also a good defense against recessions. These are not likely to fall as much as the overall market. In fact ones amongst them which do not have too much exposure to risky lending will do better. Investors need to watch out for them.
Investing in Energy And Health
Energy and health sectors will always remain the Favorites. The key in this category are clearly the oil and pipeline companies. You can always outsiders in them with great potential. With oil prices expected to remain at about $ 85 now, Energy shares continue to develop well.
Another area in the energy sector is the non-renewable energy. However, one must be careful here. The main difficulty in this group is that many of them are not yet economically viable. Due to the high energy prices, they come into theLimelight. Some of them can provide efficient excellent returns in the days to come. Watch for companies developing wind energy.
Positioning for long-term and Short Term
A balanced portfolio should consist of both long-and short-term investments. While cyclical stocks may be short-term investments, often non-cyclical is good for the duration.
Other Resource Companies
In addition to grain and natural gas can also use other resources are gold, silver and other miningShares.
Global Presence
Diversification worldwide. The world no longer depends too much on a specific country like the United States. It should be a good mix of countries have, for the purpose of investment. If you get a great balanced portfolio under-performing countries can be compensated with new ones by over-capacity.
Cash
You should always include a cost-benefit analysis. You can also check to obtain money for the use of low investment in falling markets. But oneshould not be held to raise money for a long time.
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