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Step 1
Precious metals- If you want to watch your wealth grow in value, then invest in precious metals. The most common precious metals are gold and sliver. Precious metals like gold and sliver are a hedge against the dollar. When the dollar drops in value, then gold and sliver increases in value. If you don't want to invest in the physical metal, then buy shares in mining companies that invest in precious metals. You can buy gold and sliver etfs that buy shares in several companies. Buying etfs are the cheapest and easiest way to invest in precious metals. If your more an experienced investor and has at least $10,000, then invest in a gold and sliver mine. Investing in the actual mine is the best way to get high profits investing in precious metals.
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Step 2
Bear market funds- It's bad that a lot of mutual funds took a beating in the bear market. If the same investor that lost money in mutual funds bought bear market funds, then they would of made money instead. When the economy is bad and the market is bearish, then bear market funds go up. When the economy is doing good then they tend to go down. If you want to make money in mutual funds, you should consider buying bear market fund.
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Step 3
Stock options- It doesn't matter if the stock market is going up or down. The majority of the people know how to make money in a up market, but just like bear funds with stock options you can make money in a down market. You can use certain option strategies when your stock is declining. If your stock is rapidly dropping in price, then you want to short your stock or use a put option. If you use these option strategies you can make a killing in a bear market.
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Step 4
Tip bonds- Have you ever heard of tips and have you bought any to protect your wealth in a bear market. Tips are the safest bonds you can own when the market is bearish. These bonds work just like bear funds. If the market is depressed, then tips rise in value and if the market seems bullish then tips fall in value. If you want to hedge your wealth in a bear market, then buy some tip bonds.
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Step 5
Tax liens- The best investment in a bad economy believe it or not is real-estate. The reason why real-estate is a good investment in bad times, is because you can find real-estate deals for cheap. When you own real-estate it shows a sign of ownership. You don't have to use real-estate as an investment. When times are bad you can probably find your dream home for dirt cheap. If you want the best deals look in to tax lien properties. The tax lien properties are usually sold at an auction and all you have to do is pay off the taxes to be the property owner. Once you payoff the taxes you own the property free and clear.
