Comments on: Recession Investing http://www.four-pillars.ca/2007/10/04/recession-investing/ Investing and Personal Finance Tue, 16 Mar 2010 18:10:51 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: Gold hits $1,000: Should I Invest In Gold? | Moolanomy http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-4500 Gold hits $1,000: Should I Invest In Gold? | Moolanomy Tue, 18 Mar 2008 13:04:28 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-4500 [...] Universally valuable. Gold is gold no matter where you go…unless somebody figures out a way to turn lead into gold… [...] [...] Universally valuable. Gold is gold no matter where you go…unless somebody figures out a way to turn lead into gold… [...]

]]> By: Welcome to Carnival of Personal Finance #122 at Mighty Bargain Hunter http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1225 Welcome to Carnival of Personal Finance #122 at Mighty Bargain Hunter Mon, 15 Oct 2007 05:04:09 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1225 [...] for Four Pillars remarks on recession: “Investing is possible! Can the aggression!” 4EvaYoung on that Oracle Buffett: [...] [...] for Four Pillars remarks on recession: “Investing is possible! Can the aggression!” 4EvaYoung on that Oracle Buffett: [...]

]]> By: Welcome to Carnival of Personal Finance #122 at Mighty Bargain Hunter http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1226 Welcome to Carnival of Personal Finance #122 at Mighty Bargain Hunter Mon, 15 Oct 2007 05:04:09 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1226 [...] for Four Pillars remarks on recession: “Investing is possible! Can the aggression!” 4EvaYoung on that Oracle Buffett: [...] [...] for Four Pillars remarks on recession: “Investing is possible! Can the aggression!” 4EvaYoung on that Oracle Buffett: [...]

]]> By: Moolanomy weekly roundup #11: “Investing” edition | Moolanomy http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1137 Moolanomy weekly roundup #11: “Investing” edition | Moolanomy Sun, 07 Oct 2007 20:26:49 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1137 [...] For Four Pillars presents Recession Investing.  Another excellent article that specifically discuss recession and investing.  Although [...] [...] For Four Pillars presents Recession Investing.  Another excellent article that specifically discuss recession and investing.  Although [...]

]]> By: Pinyo http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1136 Pinyo Sun, 07 Oct 2007 18:37:43 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1136 Excellent article. Although it's impossible for a lay investor like me to predict a recession, one thing I am certain about is that my portfolio has been geared toward high performing stock market for the past few years. It is good to read a post like this, so that I am forced to think about making my portfolio more balanced. Excellent article. Although it’s impossible for a lay investor like me to predict a recession, one thing I am certain about is that my portfolio has been geared toward high performing stock market for the past few years. It is good to read a post like this, so that I am forced to think about making my portfolio more balanced.

]]> By: moneygardener http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1123 moneygardener Fri, 05 Oct 2007 02:06:38 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1123 negative GDP for two quarters = start Postive GDP for one or two quarters = end. The market always works about 6 months ahead. Right now we are probably in the Pre-recession and recession speculation stage....but that doesn't mean one will occur. Look what consumer staple stocks like PG and CL have done in the last 3 months. Also gold seems to be picking up steam... negative GDP for two quarters = start

Postive GDP for one or two quarters = end.

The market always works about 6 months ahead. Right now we are probably in the Pre-recession and recession speculation stage….but that doesn’t mean one will occur. Look what consumer staple stocks like PG and CL have done in the last 3 months. Also gold seems to be picking up steam…

]]> By: Four Pillars http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1122 Four Pillars Fri, 05 Oct 2007 01:39:22 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1122 Very interesting points. MG - how do you know exactly when the recession begins/ends? Mike Very interesting points.

MG – how do you know exactly when the recession begins/ends?

Mike

]]> By: moneygardener http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1121 moneygardener Thu, 04 Oct 2007 19:51:13 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1121 I think to determine whether a recession will truly hurt corporations we must discern where they operate. In order for a recession to truly take it's toll in the world today, it would probably have to be a global one. The United States is increasingly becoming less significant...althought they are still significant. As far as stocks go, I think this strategy might not be a bad one (stage / stock): Pre-Recession and Recession Speculation stage: Consumer Staples (ie Procter and Gamble) Gold Stocks (ie GoldCorp) Cash Recession Begins (buy dirt cheap stocks) Cyclicals (ie Caterpiller, Masco) Consumer Discretionary (ie Coach)...gotta like those handbags Recession Ends Stop buying stocks Start selectively buying recovering firms in all areas. I think to determine whether a recession will truly hurt corporations we must discern where they operate. In order for a recession to truly take it’s toll in the world today, it would probably have to be a global one. The United States is increasingly becoming less significant…althought they are still significant.

As far as stocks go, I think this strategy might not be a bad one (stage / stock):

Pre-Recession and Recession Speculation stage:

Consumer Staples (ie Procter and Gamble)
Gold Stocks (ie GoldCorp)
Cash

Recession Begins (buy dirt cheap stocks)

Cyclicals (ie Caterpiller, Masco)
Consumer Discretionary (ie Coach)…gotta like those handbags

Recession Ends

Stop buying stocks
Start selectively buying recovering firms in all areas.

]]> By: ThickenMyWallet http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1120 ThickenMyWallet Thu, 04 Oct 2007 19:50:16 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1120 Good list. Consumer staples have had a run up lately (the market already anticipating a downturn). Financial stocks usually lead a downturn and head a recovery. I am looking for financial stocks which have good fundamentals but are collateral damage when the market punishes their weaker counterparts. Good list. Consumer staples have had a run up lately (the market already anticipating a downturn).

Financial stocks usually lead a downturn and head a recovery. I am looking for financial stocks which have good fundamentals but are collateral damage when the market punishes their weaker counterparts.

]]> By: TKO from Ontario http://www.four-pillars.ca/2007/10/04/recession-investing/comment-page-1/#comment-1119 TKO from Ontario Thu, 04 Oct 2007 17:44:19 +0000 http://www.four-pillars.ca/2007/10/04/recession-investing/#comment-1119 Yeah I got some. At the moment I only manage my RSP savings. Due to the small size of my portfolio I'm only using MF especially e-Funds for indexing. I did buy 10% stake in PM and 5% in EM and 5% NASDAQ, all on the dip . These turned out very well, so far. However just as the saying goes 'you win some and you loose some', my US DOW holding got killed due to the awsome Canadian Dollar. I'm not complaining though, the journey is long my friends. Like a patient hunter I'm waiting for the DOW to tank so that I can pick up lots more at a cheaper price. Cheers, TKO Ps I've printed your article Mike to as a remainder to stay the course when the markets dip. In hope that the emotions will be kept in check. I think the next recession will sort out the Men and Women from Boys and Girls in Personal Finance blogging. Yeah I got some.
At the moment I only manage my RSP savings. Due to the small size of my portfolio I’m only using MF especially e-Funds for indexing.

I did buy 10% stake in PM and 5% in EM and 5% NASDAQ, all on the dip . These turned out very well, so far.

However just as the saying goes ‘you win some and you loose some’, my US DOW holding got killed due to the awsome Canadian Dollar.

I’m not complaining though, the journey is long my friends. Like a patient hunter I’m waiting for the DOW to tank so that I can pick up lots more at a cheaper price.

Cheers,

TKO

Ps
I’ve printed your article Mike to as a remainder to stay the course when the markets dip. In hope that the emotions will be kept in check. I think the next recession will sort out the Men and Women from Boys and Girls in Personal Finance blogging.

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