Safe Investments for a Ten Year Recession

Safe Investments for a
Ten Year Recession
By www.ProfitableInvestingTips.com

https://profitableinvestingtips.com/profita
ble-investing-tips/safe-investments-for-a-
ten-year-recession
As the coronavirus continues to spread and claim
lives across the world, the markets have
plummeted and people in the “informal
economies” of the world are without work or
food. As we wrote in our article, How Far Could
Stocks Fall, we reminded our readers that the
stock market crash that started in 1929 did not
end until 90% of market value was gone three
years later.

ten-year-recession
The economy was further damaged by an
ill-advised trade war (Smoot Hawley
Tariff) and the evaporation of credit.
Historians may decide in years to come
that the lessons learned in countering the
Great Recession were crucial in dealing
with the Coronavirus Recession or
Depression.

ten-year-recession
How Long Will the Coronavirus
Recession Last?

ten-year-recession
The New York Times writes that the
recession caused by the virus could be
much worse and longer lasting that any
have so far expected. The problem is not
just that the world is steeped in debt and
equities have been overpriced but that in
order to stop the spread and damage of
the virus the world simply needs to shut
down!

ten-year-recession
The pandemic is above all a public health
emergency. So long as human interaction
remains dangerous, business cannot
responsibly return to normal. And what
was normal before may not be anymore.
People may be less inclined to jam into
crowded restaurants and concert halls
even after the virus is contained.

ten-year-recession
The abrupt halt of commercial activity
threatens to impose economic pain so
profound and enduring in every region of
the world at once that recovery could
take years. The losses to companies,
many already saturated with debt, risk
triggering a financial crisis of cataclysmic
proportions.

ten-year-recession
“I feel like the 2008 financial crisis was just
a dry run for this,” said Kenneth S.
Rogoff, a Harvard economist and co-
author of a history of financial crises,
“This Time Is Different: Eight Centuries of
Financial Folly.”

ten-year-recession
 They go on to say that the problems will
be worse in the developing world where
credit and investments have suffered in
the last year.
 Investors live with the hope that as the
crisis of infections and death recedes,
such a huge degree of pent up demand
will emerge that economies will recover
quickly.

ten-year-recession
Unfortunately, many businesses will be out
of money as will consumers.
Bankruptcies will be common and many
that do not simply go under will not have
the resources to ramp up quickly. This
crisis will affect buying habits, social
activities, and risk tolerance for at least a
generation to come.

ten-year-recession
Safe Investments for a Ten Year
Recession

ten-year-recession
What can an investor do if the recession is
going to last a decade or more? We
recently wrote about dividend stocks to
weather the market slump. But, are these
or any other investments sufficient to
weather the storm that is here, building,
and due to last for a long time?

ten-year-recession
Secure Investments for a Recession

ten-year-recession
Investopedia writes about the standard
portfolio investment strategy for the
recession.

ten-year-recession
The key to investing before, during, and after a
recession is to keep an eye on the big picture,
rather than trying to time your way in and out of
various market sectors, niches, and individual
stocks. Even though there is a lot of historical
evidence for the cyclical nature of certain
investments during recessions, the fact of the
matter is that timing such cycles is beyond the
scope of the retail investor.

ten-year-recession
Investing in companies that sell consumer
goods is always a good idea because
food, cleaning products, and even beer
are the last things that people will quit
spending on when times get tough.
Companies that support the infrastructure
like utilities also have steady income and
are likely to be bailed out in hard times.

ten-year-recession
Investments for a Recovery

ten-year-recession
Although we believe that the recession will be
longer and deeper than many have feared, we
also agree that there will be a recovery. Those
companies that survive intact and have the
assets to ramp up production as well as R&D
will do the best. And, companies like
Amazon.com with its home delivery system will
likely be well positioned to take over more of
the retail sector.

ten-year-recession
Companies with the Most Cash on Hand
24/7 Wall Street lists the American
companies with the most cash.

ten-year-recession
 Microsoft: $136 billion
 Berkshire Hathaway: $128 billion
 Alphabet (Google): $121 billion
 Apple: $106 billion
 Facebook: $53 billion
 Amazon.com: $43 billion
 Ford: $37 billion
 Oracle: $35 billion
 Cisco: $33 billion
 Bristol-Meyers Squibb: $32 billion

ten-year-recession
These companies are likely to survive an
extended recession intact and be
positioned to grow during the eventual
recovery.

ten-year-recession
For more insights and useful information
about investments and investing, visit
www.ProfitableInvestingTips.com.

Safe Investments for a Ten Year Recession

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Safe Investments for a Ten Year Recession