Would you invest/trade in stocks during an economic recession?
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Buy gold when it's low in relation to stocks and money supply, buy stocks when gold is expensive and stocks are cheap relative to it.
swap assets classes against each other when one is expensive and the other cheap. like gold to oil ratio.
buy gold now, swap to oil when the ratio hits over 18:1 and accumulate oil when it is cheaper than that. between 18:1 and 14:1 don't do anything with gold or oil.
If i was a buy and holder i sure would be buying. If i was more a timer or trader than no.
Buy low sell high rarely works and the odds are against you if you are a timer or trader.
As i said in another thread a body in motion stays in motion until it hits something.
When momentum is sending a market down the odds of catching the low are about as slim as bailing at the top.
Buying high and selling higher is the better way to go. You want to be part of the upward momentum buying and selling.
The odds of being the last guy at the end of the line on the way up are a fraction of what your odds are of not catching anywhere near the low on the way down and falling alot farther or getting stopped out..
Last edited by mathjak107; 07-27-2013 at 01:07 PM..
If I am already a wealthy man, and I can buy controlling interest in a large corporation, yeh sure why not? I think it just depends on the prices of the stocks. Everyone everywhere always needs the stuff that corporations want to sell whether the economy is good or not.
However, if I am small fry, I do not see the point in buying stocks. I might as well invest whatever I have in myself: get an education, make myself happy in the short term, or put it in something more guaranteed to give me something back.
well i am retiring in about a year on the money made in stocks and my investments as a small fry.
we did 1400% worth of frying since i started in 1987.
well i am retiring in about a year on the money made in stocks and my investments as a small fry.
we did 1400% worth of frying since i started in 1987.
VIXY, the ETF. I have $1600 in it. Look at it's stats, it goes pretty much opposite of the DOW. Seeing as the DOW is so high right now, I have money in VIXY. When the DOW falls significantly, I will sell VIXY and buy Schwab broad market ETF.
I honestly wish I could've bought into the last recession especially after looking at their prices during the recession; companies like Ford were down to $2.50 during the recession, if I would've purchased a few hundreds dollars worth of shares I would've been in pretty decent shape to say the least. Till this day I've searched for companies that may have a chance of coming back hence why I've invested pretty heavily in Sunpower. The next company I do intend on buying into is Sprouts, I think it may be a good investment and I've even talked to people who work for the company about their mission and they've given me the confidence to invest a few hundred dollars to say the least.
So essentially I agree with others, recessions are like sales on stocks, remember "buy low, sale high."
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