Gold Investing Strategies Blog February Archive

Small cap investors get three ways to beat the recession

02/23/09 11:53

How can you beat the recession? Well if you are a small cap investor, here are three ways to start with from Greg Guenthner.

• Invest in sin stocks: Logic says that someone who has just lost their job, may not go out and buy a car, but they sure are not going to forego their beer or cigarettes. The best performing stocks have been tobacco and alcohol during past recessions.
• Think cheap: Check out retailers with market caps at less than $1.5 billion and see if you can find any interesting plays related to the theory that cheap goods that are sold by discount retailers are hotter during a recession (Wal Mart).
• Find the necessities: Even though families are cutting back, they aren't going to stop buying toilet paper and laundry soap just because they are strapped for cash. Companies that produce necessity goods are a good place to look.

Read more: Small cap investors get three ways to beat the recession [click]

Dollar rally not a reflection of U.S. currency improvement

It is only by default that the dollar is rallying says David Gaffen, writing in the Wall Street Journal.

Read more: Dollar rally not a reflection of U.S. currency improvement [click]