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Step 1
For both devaluation of the U.S. dollar against other currencies and inflation at home age old wisdom says hard goods and commodities. In investment choices this means gold, silver and other precious metals that are a store of value are a great investment. I prefer to buy and actually take possession of gold and silver. There are also funds that buy gold and silver or stock in mining companies.
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Step 2
Look to commodities and stock in companies who have a product people use in any economic climate. Beware of trends in food and other commodities. Some markets like corn, wheat, as well as gold silver and energy stocks can be highly manipulated by speculators and may readjust. Keep a long term view of value both historically and looking forward at supply demands.
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Step 3
Look at nations, and also world regional stocks and emerging market funds and growing firms. Even with a global economy some countries are better situated or simply ready to take off on a growth spurt. Third world countries with proper management of resources are often undervalued or priced low enough they have a lot of upside possibilities and little downside.
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Step 4
Look locally. Stocks in local small companies and local real estate in your own back yard can be more easily evaluated. Knowledge is king in investing. You can become an expert on local housing and commerce much faster than learning world markets. Real estate has a rental return if bought carefully and can be a good store of value in an inflationary cycle. If you lock into long term leveraged loans and the dollars value drops rents will rise and you will have a steady mortgage that can be paid down with cheaper dollars. Just make sure there is enough equity and cash flow to ride out vacancies or a temporary downturn.
Comments
goodselfme said
on 11/9/2009 TX for the investment tips.
sonni57 said
on 11/9/2009 Good info on how to invest in today's economy.
survivoryea said
on 11/9/2009 Very good investment tips-gold is good-china is upcoming-IMHO-thanks