In a unpromising cutback, what are the best kind of stocks to invest contained by?
Answers: I guess that depends on what phase of the "bad economy" you believe we're in. If you reason it's at the beginning, then you want to buy deterrent stocks. But if you think it's at the tail end, you may want to start buying out of favor cyclical stocks that are already at low prices freshly before they start bouncing back. Currently I believe this monetary slowdown will be mild and will not last much longer. That being said, nearly any stock could be a worthy buy. Personally I like oil companies as the worldwide constraint for oil (thanks to China and India) is going up no matter what happen to our economy. That being the bag their long term future looks bright to me. Unless logically Hillary or Obama get elected as they have promised to angle taxes on everybody which may plunge us into a deep recession and especially so on the big bad grease companies.
The ones that are doing well, meaning, the ones that are hitting contemporary highs. After all, they must be doing resourcefully if their stocks keep going up.
Many people suggest that we invest within consumer staples in a bad reduction because everyone still needs to buy their products, but I have not see any evidence that these types of companies do well in bleak times. For example, in bad times, relations may switch from Tide to the less costly generic brand, thereby hurting the profits of Proctor & Gamble, the maker of Tide. The consumer staple stocks may also frontage the same pressures that other companies do, such as rising commodity costs, increased transportation costs etc.Also, the price of many of the consumer staple stocks enjoy already increased because of such investment advice. Do you really want to buy a stock with a price to proceeds ratio of 25 (on the high end) for a company that is individual growing 5% each year? (A standard guide for investing is not to buy a stock for which the forward P/E is greater than 1and 1/2 times the growth rate). When it looks like the discount is going to turn up, investors may start to abandon the consumer staple stocks and if you don't time your selling well, you could wrap up up losing money.
If you look at the new high list, most of the stocks on it are either in the vim industry or the agriculture/fertilizer industry. That's not to say that these companies will continue to do resourcefully. Part of investing in individual stocks is learning to anticipate the revise in market control. If it was easy, more individual investors would be multi-millionaires.
Necessities are the traditional locked haven, things like food (or food retailers), oil, clothes (I suppose) and suchlike. Don't forget in the region of putting your money in gold. Of course, unless you intend to net a return after the bad times in the reduction, it's not the best time to be investing in stocks at all. You're probably better rotten with a high interest reserves account to minimize risk. The ones losing a lot of money.
It seem you don't know what short sale means.
See below.
Gold, silver, Euros, etc. fresh materials.