Comments on: What are the best things to invest in to make your portfolio recession proof? http://www.fn-live.com/what-are-the-best-things-to-invest-in-to-make-your-portfolio-recession-proof.html Loan and Financial Info Mon, 01 Feb 2010 15:06:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: muncie birder http://www.fn-live.com/what-are-the-best-things-to-invest-in-to-make-your-portfolio-recession-proof.html/comment-page-1#comment-162 muncie birder Mon, 17 Nov 2008 01:34:53 +0000 http://www.fn-live.com/what-are-the-best-things-to-invest-in-to-make-your-portfolio-recession-proof.html#comment-162 Do not worry too much about the next few years. Instead worry about the next few months. T-bills are very recession proof. In fact they are the most preferred of recession investments. Next would be long term governerment bonds, assuming the Fed cuts interest rates to zero again like they did in 2001. The Fed gets very upset about recessions. I do not know why. They actually serve a very useful purpose in shaking the deadwood out of the economy. Long positions in equities do not do very well during recessions. Short positions do very well, especially in the high PE stocks. There is an option available to you in the form of recession insurance on your equity portfolio. It is called purchasing puts on QQQQ. Very effective insurance. If the bottom drops out of equities, the puts will become worth very much more. Do not worry too much about the next few years. Instead worry about the next few months. T-bills are very recession proof. In fact they are the most preferred of recession investments. Next would be long term governerment bonds, assuming the Fed cuts interest rates to zero again like they did in 2001. The Fed gets very upset about recessions. I do not know why. They actually serve a very useful purpose in shaking the deadwood out of the economy.

Long positions in equities do not do very well during recessions. Short positions do very well, especially in the high PE stocks.

There is an option available to you in the form of recession insurance on your equity portfolio. It is called purchasing puts on QQQQ. Very effective insurance. If the bottom drops out of equities, the puts will become worth very much more.

]]> By: regerugged http://www.fn-live.com/what-are-the-best-things-to-invest-in-to-make-your-portfolio-recession-proof.html/comment-page-1#comment-161 regerugged Sat, 15 Nov 2008 14:47:58 +0000 http://www.fn-live.com/what-are-the-best-things-to-invest-in-to-make-your-portfolio-recession-proof.html#comment-161 CD's and US Treasuries. CD’s and US Treasuries.

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