Question by Matt: New to investing want to take advantage of Recession HELP ME?
Alright I have 20k I was thinking of investing and these are the companies I have selected. First all are non cycical materials. These are generally recession resistant. I researched fundamentals I based mine on low debt(5yrs), ROE(5yrs) , and EPS growth(5yrs), consistently beating/meeting earnings each quarter(2 years), companies that are well established, operating income(income post taxes/wages, etc). I am young, 23 years old and I want to try and take advantage of what might be a once in a lifetime oppurtunity. Espically now that hedge funds are being sold off to pay off investors it seems like prime time. All of my investments are long term 3-5 and maybe longer years. Not to pat my self on the back but I took my IRA money out of index funds while the Dow was at 13500 and put it into a money market fund. Just now I am dollar cost averaging the money back into index funds. Anyways tell me what you think. My family is poor and has no clue about investing and neither to my friends so Yahoo Answers is about my best resource.
JNJ-Johnson and Johnson-Body care- Always needed in a recession
PG-Staples, Home, Body care- Always needed in a recession
CL- Staples, Home, Body care- Always needed in a recession
CLX-Clorox- House Cleaning- Always needed in a recession
Also all of these companies have 10% annual dividand increases.
Best answer:
Answer by castillb2007
I have no advice, but would like to give you credit. Especially for pulling your money out before the DOW tanked. Good Job! Good Luck!
What do you think? Answer below!
Good ideas on your stock picks. Buy now at the low prices and hold them for a longtime, if not forever (like Warren Buffet). Thats what I am doing anyway. There are a lot of different strategies to investing. Reseach them all and you decide what’s best for you. Most importantly buy now while the prices are so attractive!!
I would recommend that you watch CNBC, Bloomberg TV and Fox business news, read business week, Investors Business Daily and the Wall Street Journal.
Also bookmark this: http://thewallstreetbully.blogspot.com/ and read it.
He also has a free weekly email with a lot of information.
The stocks you list will probably drop less than most stocks, but will still drop until the market changes direction. GE and CAT might also be worth considering. GE is the only stock left in the Dow Jones Industrials from the original Dow Jones Average devised by Charles Dow.
KO- Coca cola is good also and it is a very good brand.
Seems the only way to make money these days is either going short and following the lead of the hedge funds or to buy ultrashort etf’s, even regular short etf’s will do ya. Ultra’s are better for this freefall. I own a few consumer staples myself and yes they still get hit. And if the market ever rallies back, they always fall behind. basically they won’t lose as much, but they also will never gain as much as general market.