What would be your recommendation for investments in the following industries?
Posted by admin on 29 May 2008 12:31 am. Filed under Investing.
Cifru asked:
Suppose you believe that the FED/Central Bank is going to dramatically loosen monetary policy. What would be your recommendation for investments in the following industries:
Suppose you believe that the FED/Central Bank is going to dramatically loosen monetary policy. What would be your recommendation for investments in the following industries:
On May 29th, 2008 at 5:13 pm
recommendations for investments in the following industries after FED/Central Bank is going to dramatically loosen monetary policy.
more money will be available and interest rates will tend to be lower.
a) gold mining, sell
b) construction, buy
On May 31st, 2008 at 12:30 am
I’m not sure if I would go with either one.
My first move would be to use a sector map [such as the one at smartmoney.com AND/OR barchart.com - which are both free sites].
After seeing exactly which sector “the Big Boys” are investing their money, I would find out which companies are in that sector and the ones which met my criteria are those where I would invest my money.
Thanks for asking your Q! I enjoyed taking the time to answer it.
VTY,
Ron Berue
Yes, that is my real last name!
On June 1st, 2008 at 4:35 am
One thing to consider is that if the Fed cuts interest rates sharply, I expect that inflation will rise dramatically. If that does happen the price of gold will also rise dramatically. The U S government is essentually bankrupt and the dollar is rapidly becoming virtually worthless.
As for construction, it might be worth investing in the construction industries in China and India.
On June 3rd, 2008 at 5:43 am
Gold mining sounds interesting. Residential construction is terrible. Energy Infrastructure construction might be good. I like Shaw Group in this sector: