Comments on: The Best Way to Invest Your Money During An Economic Downturn

By: Tom O'Connell

Tom O'Connell — Tue, 09 Feb 2010 20:36:29 +0000

Hi Erika. Just saw your excellent site from CathLawson.com. I’m sure your advice site will be well received. One of the best things ANYONE can do is to start a home business to increase cash flow and maximize deductions. I’m involved with a wonderful company that offers an easy CO-OP plan if any of your readers would be interested. Our business is going great guns despite the bleak economy. All the best, Tom O’Connell http://www.trivita.net/11389068

By: knightsbridge business sales

knightsbridge business sales — Tue, 06 Oct 2009 07:24:50 +0000

Nice blog.
Tia Smith

By: Best Place to Invest Money

Best Place to Invest Money — Thu, 04 Dec 2008 13:54:01 +0000

There were many people making lots of money by buying in the stock at low price or value investing. But I find it a bit too risky to do so in this economic downturn because it seems that there the effect of this financial crisis is too great and it may take really a long long time to recover. So, I think we will need to follow the trend and doing some shorting in the market as the best way to invest money.

By: Larry Ludwig

Larry Ludwig — Mon, 27 Oct 2008 19:38:42 +0000

Gold is good for speculation only. Long term has and will always stink as an investment (10-20 years). History has always shown this.

Short term investment is another story.
Gold is going to go lower (as most other commodities because of the deflationary pressures) but in the next 1-5 years will increase because of the issue of inflation or hyper-inflation. The US Govt is pumping soo much cash, that it will eventually happen. Buying an ETF like GLD or IAU is a much easier option than buying actual gold.

As a value investor who does not time the market IMHO buying stocks is a much wiser long term choice, especially those will loads of cash and/or good dividends. P/E of some companies are at historic lows.

By: ericabiz

ericabiz — Sat, 25 Oct 2008 05:01:41 +0000

Hi Andy,

The newsletter I am reading says: “Gold broke important support at 740 and could now fall to as low as 550.” I did say there was a downside risk to gold in the $550 range. If it does get down to $550, I may consider buying more. I didn’t buy to flip, however — I’m comfortable waiting a year, or two, or more with mine.

-Erica

By: Andy

Andy — Fri, 24 Oct 2008 14:15:52 +0000

And now it’s $680 an ounce. Still a buy signal? Personally, I think cash is king right now.

By: ericabiz

ericabiz — Tue, 21 Oct 2008 03:44:17 +0000

@Mike: I was watching several different newsletters that had mentioned if gold went back under $850 to buy it. Of course, it is at about $800 now…still a buy signal.

I am keeping money and cash AND in gold.

-Erica

By: Mike

Mike — Sun, 19 Oct 2008 03:23:06 +0000

“…Gold recently hit a long-term buy signal, dropping below $850 an ounce on the day the second bailout passed.”

Why is $850 a long term buy signal?

“…There will be many chances to get firesale prices on assets in the future, but you must have the cash position to be able to jump on them when you see them”

If you advocate keeping money in cash, why invest money in a commodity like gold? If gold has long-term investment potential I would think it should generally be due to monetary inflation, not deflation.

For that mater, for those suggesting investing in gold, why not just buy shares of the GLD ETF? (Is its expense ratio higher than buying/selling coins from a dealer?)

By: ericabiz

ericabiz — Fri, 10 Oct 2008 06:58:15 +0000

Hi all,

Great comments!

Gail, I would agree with you if interest rates were the same for 15- and 30-year mortgages. But interest rates are significantly lower for 15-year mortgages, making it an advantage to have one.

I would agree with having plenty of money in reserve, but I’d do it with a 15-year mortgage…which is one of the reasons I’m still renting.

@Steve: I’m enjoying the ride. I hedged with gold — so I agree with you — but I’m many years away from retiring, so my IRA balance is not that significant to my daily life right now.

@Joshua: I consider paying off credit cards one of the most important things you can do. Better yet, get out of the “can I afford the payments?” mentality and into the “Can I buy this with cash, NOW?” mentality. It will be a tough switch for most Americans to make…

Thank you again for taking the time to comment!
-Erica

By: Joshua

Joshua — Fri, 10 Oct 2008 06:24:47 +0000

Personally, I’m not sure why you ranked the paying off of high interest credit cards so far down the road. I know that there is quite an addiction ( and for some a sense of security ) with credit cards, but within th realm of finances, they can be deadly.

That being said, it was interesting to read about using gold as a hedge. I’m not a huge fan of gold, but if I was more inclined I would likely use an ETF or mutual fund. Keeping all those gold dublooms around makes me feel too much like a pirate !