Saturday, March 07, 2009

Investments that don't suck

Right now I would not invest in luxury goods. With the grain futures low, and beef and pork prices continuing to fall, the best investments are in the everyday items. Regular consumer goods that everyone needs. In a down economy it is best to invest in stable companies with long track records that deal in popular consumer product groups. So what I am saying here is invest in toilet paper and everyday clothes (jeans, casual clothing, etc.). Food is always good, but who is doing better, and who is going to survive the shakeout? I can't say for sure now, but one thing that remains at least for now, soda, chips and beer are relatively safe bets at least in the short term. Although I am not an advocate of shorting the market, in such conditions it sometimes is necessary to ensure that you can move with the times. What I suggest is not shorting the market, but keeping in the market, while at the same time shorting some stocks, trading some for others as the market tries to re-stabilize. That's all for now... good luck.
JD

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