STRATEGY of INVESTATION in GLOBAL RECESSION
In recent months, all people talked about the possibility of a recession in the next year, because of the subprime-housing cases in the USA mortgage. The question is, what must we do to anticipate this?
At least there are a few tips I can give (BEFORE CRISIS), among others:
- Invest in hard assets are liquid, such as gold, because gold will be driven by rapidly rising global inflation as well as depreciation.
- Not recommended to hold the assets in the form of house / land before the crisis, especially if the purchase was financed by bank debt, because the price of the house / land will tend to fall as the crisis and instead of debt repayment will swell due to rising interest rates, as a record year in times of crisis 2001-2002, interest on bank loans reached 30% per year.
- Advised not to hold shares at the time before the crisis, because stock prices will fall drastically. And not recommended for buying down the average price down.
- Avoid long-term deposits while we can not withdraw the deposit at the time of recession, can not enjoy a high rate during the recession.
A few tips when PEAK CRISIS and things started a little quiet place:
- Fox investment patterns, as well as the value of USD and gold has risen to the top, directly in selling (profit taking).
- Buy blue chip shares when stock prices fall drastic, up more than 60% of its original price, usually at the time people just do not want to own stock in droves and sell shares.
- If there were more money, can be bought cheap assets in the form of potential house or land in a location that promises yet again on sale on sale, because the decline in demand in a recession, developers often provide good discount.