There are different ways to "safehouse" during the global recession. You can also make money - but you need nerves of steel to get involved in some of the things I do, and a lot of "skill" that takes time to learn.
But as far as safety. Well here is one idea. There are other ways, too, but here is a starter for those investors who have portfolios. I said I would occasionally chime in.
I have my plan for a "safehouse" during the economic global recession. I am using Agriculture ETFs and an Agra Index (warning! do not invest in in ETNs which abound as "notes" in the agra/grain/rice commodity exchanges! only ETFs, Indexes, which have at least 1% holdings in rice - higher is better - and holdings in wheat, corn, soy beans as well as sugar).
Also if you want some risk but potential big profits, supplement this with investments in tea. However there are no ETFs in tea (there are in coffee, but tea is the historical ship of sail only next to opium - remember besides death and taxes, there is gold, rice and tea). You invest in individual company stocks which have business in the GLOBAL tea market.
I will not quote individual fund names since I would be accused of trying to front some fund or stock. But you can figure it out.
Firstly, the price per share for these Agra Funds is pretty much the same, and has been so for years: $20 dollars a share.
The most stable, and boring, a particular US Index. The most popular has always been $20 dollars since it's inception in 2012. Yes... new baby. So there is no historical record for the 2007, and Oct 2008 recession.
But a primary Agra Fund should be an ETF, not this Index. There is a favorite on the NYSEArca.
The key is the grains - and again, rice. An ETF will have a broad spectrum of grains and sources, look for at least 1% holdings in rice. That is because, they are the stable ones. In recession, people will still need rice, corn, wheat, etc.. Throw in sugar, that's good, too. If they don't hold rice, they are amateurs - they have no lineage, no pedigree.
The Agriculture ETF heavy on grains and rice and corn - THIS would be a primary "cash bucket" during the global recession. Do not be fooled with the "spooky percentage loss" stats you might see in your "analysis" - it is only $20 a share, has remained between $20 to $30 dollars a share for a decade... with a peak of $40 dollars per share during the 2007, Oct 2008 recession.
Why? Peak?
Agra commodity ETFs go up in a recession since many investors turn to them to hold their money during downturn since "people always need food, especially rice, corn, flour grains".
So the price goes up simply because more investors simply turn to agra commodity as a "safehouse", this drives the per share up. So it is the investors who drive the price up, it is not that they suddenly had some sort of jump in profits selling corn. They just are "safe(-er)" in a recession.
Outside of that, the price per share remains stable, only fluctuating a few cents or at most a few dollars.
You won't make money.
But you won't lose a lot of money, either.
Yes, as said, there are ways to make money, too. But that is another post.
See the example refession chart on Agra commodity ETF example:
Dec 1, 2008 24.53 26.20 21.52 26.18 1,372,500 26.18
Nov 3, 2008 25.97 27.39 23.23 24.68 1,477,700 24.22
Oct 1, 2008 30.13 30.55 23.16 25.70 1,635,100 25.22
Sep 2, 2008 34.00 34.72 30.15 30.21 1,633,800 29.64
Aug 1, 2008 36.54 38.16 32.88 35.37 1,501,100 34.71
Jul 1, 2008 40.84 42.16 34.60 36.49 1,969,800 35.81
Jun 2, 2008 35.94 42.65 35.35 40.68 2,245,400 39.92
May 1, 2008 36.41 37.79 34.83 35.35 1,880,000 34.69
Apr 1, 2008 35.79 39.82 35.38 36.60 2,334,800 35.91
Mar 3, 2008 42.70 43.01 35.83 36.45 4,598,800 35.77
Feb 1, 2008 37.28 43.50 37.01 41.56 2,908,700 40.78
Jan 2, 2008 33.14 37.57 33.04 36.99 2,423,600 36.30
Dec 17, 2007 0.45 Dividend
Dec 3, 2007 30.86 33.54 30.65 32.99 653,500
Tea:
I have chosen three unnamed stocks. The primary is a famed U.K. giant on the global market. Next, a Taiwan Chinese Tea giant.
Lastly, a gamble. You must always bet one hot pony in a 9 horse race card. You must take some risk somewhere, or you cannot bet the ponies, just live with your mother.
I chose a new Canadian based tea company. Off to the races.
But as far as safety. Well here is one idea. There are other ways, too, but here is a starter for those investors who have portfolios. I said I would occasionally chime in.
I have my plan for a "safehouse" during the economic global recession. I am using Agriculture ETFs and an Agra Index (warning! do not invest in in ETNs which abound as "notes" in the agra/grain/rice commodity exchanges! only ETFs, Indexes, which have at least 1% holdings in rice - higher is better - and holdings in wheat, corn, soy beans as well as sugar).
Also if you want some risk but potential big profits, supplement this with investments in tea. However there are no ETFs in tea (there are in coffee, but tea is the historical ship of sail only next to opium - remember besides death and taxes, there is gold, rice and tea). You invest in individual company stocks which have business in the GLOBAL tea market.
I will not quote individual fund names since I would be accused of trying to front some fund or stock. But you can figure it out.
Firstly, the price per share for these Agra Funds is pretty much the same, and has been so for years: $20 dollars a share.
The most stable, and boring, a particular US Index. The most popular has always been $20 dollars since it's inception in 2012. Yes... new baby. So there is no historical record for the 2007, and Oct 2008 recession.
But a primary Agra Fund should be an ETF, not this Index. There is a favorite on the NYSEArca.
The key is the grains - and again, rice. An ETF will have a broad spectrum of grains and sources, look for at least 1% holdings in rice. That is because, they are the stable ones. In recession, people will still need rice, corn, wheat, etc.. Throw in sugar, that's good, too. If they don't hold rice, they are amateurs - they have no lineage, no pedigree.
The Agriculture ETF heavy on grains and rice and corn - THIS would be a primary "cash bucket" during the global recession. Do not be fooled with the "spooky percentage loss" stats you might see in your "analysis" - it is only $20 a share, has remained between $20 to $30 dollars a share for a decade... with a peak of $40 dollars per share during the 2007, Oct 2008 recession.
Why? Peak?
Agra commodity ETFs go up in a recession since many investors turn to them to hold their money during downturn since "people always need food, especially rice, corn, flour grains".
So the price goes up simply because more investors simply turn to agra commodity as a "safehouse", this drives the per share up. So it is the investors who drive the price up, it is not that they suddenly had some sort of jump in profits selling corn. They just are "safe(-er)" in a recession.
Outside of that, the price per share remains stable, only fluctuating a few cents or at most a few dollars.
You won't make money.
But you won't lose a lot of money, either.
Yes, as said, there are ways to make money, too. But that is another post.
See the example refession chart on Agra commodity ETF example:
Dec 1, 2008 24.53 26.20 21.52 26.18 1,372,500 26.18
Nov 3, 2008 25.97 27.39 23.23 24.68 1,477,700 24.22
Oct 1, 2008 30.13 30.55 23.16 25.70 1,635,100 25.22
Sep 2, 2008 34.00 34.72 30.15 30.21 1,633,800 29.64
Aug 1, 2008 36.54 38.16 32.88 35.37 1,501,100 34.71
Jul 1, 2008 40.84 42.16 34.60 36.49 1,969,800 35.81
Jun 2, 2008 35.94 42.65 35.35 40.68 2,245,400 39.92
May 1, 2008 36.41 37.79 34.83 35.35 1,880,000 34.69
Apr 1, 2008 35.79 39.82 35.38 36.60 2,334,800 35.91
Mar 3, 2008 42.70 43.01 35.83 36.45 4,598,800 35.77
Feb 1, 2008 37.28 43.50 37.01 41.56 2,908,700 40.78
Jan 2, 2008 33.14 37.57 33.04 36.99 2,423,600 36.30
Dec 17, 2007 0.45 Dividend
Dec 3, 2007 30.86 33.54 30.65 32.99 653,500
Tea:
I have chosen three unnamed stocks. The primary is a famed U.K. giant on the global market. Next, a Taiwan Chinese Tea giant.
Lastly, a gamble. You must always bet one hot pony in a 9 horse race card. You must take some risk somewhere, or you cannot bet the ponies, just live with your mother.
I chose a new Canadian based tea company. Off to the races.
