The following is a guest post…
The economy has been slumping over the last few years, making it more difficult for many investors to profit. The good news is that there are always opportunities available, even in the worst economies. Here are six investments worthy of your money.
Good real estate is almost always a good investment. It’s been said that real estate is a perennial investment because, “They aren’t making any more of it.” If the economy continues its downward trajectory, a good piece of farmland will be invaluable. And if the economy never gets that bad, you have a nice retirement site that will only grow in value over the years. If you are handy, a great investment is a fixer-upper. You can buy the house for extremely inexpensive, fix up the house and property and turn resell it for a profit. You may also consider investing in a rental unit. While rentals do take work (upkeep, choosing renters, etc.), many people find them well worth the cost, especially when retirement time rolls around.
Gold And Silver
Precious metals are hot right now. With the U.S. running massive budget deficits and the Federal Reserve revving up quantitative easing (money printing), inflation is set to increase in the future. Gold and silver are two historical hedges against rising prices. Precious metals make the perfect investment because, regardless of the value of currency currently, the metal will always have value.
Another way of playing the precious metals boom is by investing in gold mining stocks. In the last great gold bull run, gold mining shares actually outperformed the metal price in many cases. This also means you do not have the hassle of storing all that gold somewhere. While mining stocks do make a good investment, investing in them can be a little risky so be careful.
People always have to eat. Most agribusinesses are a good bet when it comes to investing. They have enormous tracts of land available for large-scale farming and an inflationary environment when it comes to food. The price of agricultural commodities continues to rise along with food prices.
Home Security Systems
In a slumping economy, many people become desperate. Crime tends to increase, including burglary and home invasions. “An investment in a home security system will increase the value of your home and protect the investments you already have,” said Nancie Hill, a Cleveland home security expert from Vivint.com.
Utility stocks are usually a safe play in a down economy. Just as people must eat, they also need power for cooking, lighting, and entertainment. Go for the big utility companies that have been around for a while. Many utility stocks also pay nice dividends, so you will have a small income just from these payouts.
The important thing to remember in today’s economy is that simply “buying and holding” may not work so well anymore. Many economists expect tremendous volatility over the next few years. What is a good play today might not be tomorrow. Stay alert to changing market conditions