what's the best way to make money in a US recession?

[z106]

Are there any generak rules of thumb on what happens to prices in a recession?
what's the best strategy?

Go short on stocks?

How are commodities affected?

WHat generally happens?

Is it possible to take advantage of this?

 

[Gautama]

Are there any generak rules of thumb on what happens to prices in a recession?
what's the best strategy?

Go short on stocks?

How are commodities affected?

WHat generally happens?

Is it possible to take advantage of this?

Buy shares in business that tend to do well during economic downturns.
Repo companies tend to do well, I once heard. Dunno the name of any.
Or pawn brokers/second hand sales/auctions. We're not allowed discuss individual shares, but there's one big-name eCommerce company that may do well ...

 

[coola]

you should not buy stocks at all in a US recession, all the analysts that say we are de-coupled from the US dont know what they are talking about. chinas growth story is linked 100% to the US as their domestic demand is not strong enough to maintain growth. commodities will fall as demand for them eases due to slow economic growth. if you feel you must buy stocks then the usual defensive plays are the likes of a beverage company "always xxxx xxxx" and its very similar neighbour. medical companies also tend to do well but bear in mind that buying stocks in a bear market is very very unsafe as 3 out of 4 stocks will fall. its always about sentiment. if i were you i would put any available money in a deposit account, be ready to buy stocks soon (maybe at start of february if FED slash rates by more than .5%) or else around march / april . the bear market wont last long as central banks re-act agressively and its a presendial election year in the US so they will do everything in their power to kick start the economy i.e. tax cuts, rebates etc. be patient !! ( a lesson i learnt the hard way)