There is no need to lose hope about your financial future. Although the recession has made employment opportunity and property management more difficult endeavors, there are other investments that can be made to secure long-term financial goals. You can still make recession proof investments that will increase the value of your portfolio. Read on to know what you need to keep in mind when making investments during this unstable time in the US economy. You don’t need to worry about market crashes or tax increases with the methods suggested below.
First and foremost, making practical recession proof investments is a matter of knowing the growth of the company during the recession period. Eye the companies that have predictable growth amounts—these are usually the big companies that have survived the effects of the recession. Narrow down your choices to industries that have gained stable footing throughout the decades, no matter what the economic challenge. These companies usually maintain a strong cash flow, thus will gain back your investments more regularly than facing a sudden loss from the uncertainty of its industry. Look into food, manufacturing, and household companies as they continue to be needs for all kinds of consumers. Healthcare and pharmaceutical companies have also faced the least effects from the recession since the need will remain no matter the financial condition of the economy. There are also companies that specialize in corporate needs such as hiring and human resources.
If stocks are too high of a risk for your money, then you can also look into certificate of deposits. These let you rely on stable rates per annum instead of the probable lows that some stocks fall into. You can also look into recession proof investments of the tax-free nature, which include bonds, notes, treasury bills, and municipal bonds. These protect your money from any kind of government tax, whether federal income, local, or state. Your portfolio is guaranteed more predictability in terms of yield.
You can also invest in properties such as multifamily apartments or houses. If you have enough money stored for a large home or apartment, you can invest in the lower rates many real estate properties are going for. You can rent out these spaces to homeowners looking into rentals and make money off the rent they will pay. This will assure you of monthly income without doing much work.
Another property worth investing in is rental space storage. If you have a space that can be rented out for storage, you can rent this out for those that are moving out simply want to keep out some of their things. Self-storage investment trusts went up 30 percent in 2010, assuring you of better rates in the future.
Art is another industry to look into. The value of masterpieces increase over time and are not affected by the financial markets. You can ask your relatives for any old art pieces they are willing to sell or you can ask any curator to check out the value of the paintings you have. If you have enough money, you can also look into auctions and invest in a worthy piece.
If you live in an area with agricultural land, you might want to look into leasing farmable land. Expect a leasing yield between five to eight percent. The demand for food will always be there, allowing you to maximize the produce yield from the land you invest in.
If you have enough money and the means, foreign investment is another practical option. China’s economy is continuing to boom, offering alternatives that are growing at faster and more lucrative paces. Touch base with your contacts in countries such as Singapore or India, and even those in Latin America, and you may find a new addition to your recession proof investments.
You can also turn stocks to your favor by buying the right one. Investors who have hoarded stocks tend to sell when the markets boom, so be sure to time when you purchase the right one. Avoid buying during a market crash—instead wait until it reaches the bottom and then purchase them when they begin to rise in the market. You can also invest in other industries such as timber, precious metals, and entertainment. Although this mix sounds odd at first, these are products that maintain a certain demand even during the recession.
Another alternative would be investing in foreign currency. Look into currencies that perform over the current declining value of the dollar. Asian currencies have been performing well and are worth looking into, apart from the stock their businesses offer. Look into countries whose real estate, commercial, and business industries are booming. Many Asian countries have been enjoying higher income spending with better employment opportunities and business investments. Study the individual markets and consult with local brokers or businessmen to be sure about your decision about recession proof investments abroad.