Crisis Investing

These are investing ideas to consider in a financial crisis. The reader assumes all risk for potential losses and responsibility for excess financial gains. Investing is much harder during a financial crisis. This page is for informational purposes only. These ideas are only the ideas of the web master.

  • One option is to short U.S. Treasuries (T-Bonds). If the credit rating of the U.S. Is downgraded again, you could try TBZ or TYO. TYO is a leveraged ETF.
  • You could trade volatility by going long on the VIX.
  • If you think U.S. Treasuries will do well, as investors tend to flee to them for safety, try TYD.
  • Foreign government bonds could do well if and when another crisis arises.  One ETF to consider is GIM. GIM’s yield is higher than U.S. T Bills. Keep in mind GIM has exposure to the bonds of some volatile nations like Nigeria.
  • If inflation is a fear, investigate gold (GLD) and silver (SLV) ETF’s, miners (GDX and XAU), and physical gold and silver. There are also inverse (short) precious metals and 2X leveraged gold (UGL).
  • If you think bank shares will tank, see FAZ. BEARX and GRZZX both are inverse (short) stocks.
  • When the market recovers, look into shorting the U.S. Dollar with UDN. If the Federal Reserve prints tons of money, UDN should be good. But being long on excellent stocks is probably better.
  • When a crisis strikes, consider UUP to go long with leverage on the dollar. (Because people will need/want cash)
  • You will probably want to hold the ETF’s listed above for hours, days, or weeks. Not to buy and hold forever.
  • Apartments and farm land should do well in a crisis. Apartments should do well when interest rates rise.
  • Growth stock mutual funds will probably be terrible in an economic crisis.  Most funds lose to the S&P 500 over a ten year period, whether the market rises or falls. You could choose to ride out the storm, however.
  • When the market bottoms out, look for excellent companies at low prices. You could look for quality companies with high beta’s. Look for dividend deals, including closed end funds (CEF’s) when the market bottoms. Remember, leveraged bearish funds aren’t meant to be held forever. Spread your money around. Read Rule #1 Investing, which advises buying companies with wide moats. If economic crisis were to strike, during the recovery I’d by Internet of Things (IoT) and robotics shares.
  •  In midst of a financial crisis, to find bargains, determine what few stocks in your portfolio or your portfolio before “the crash” are the best value (deal) now.
  • Don’t become a “perma-bear.”
  • One thing you, your broker, and/or your mastermind group could do is research private equity firms. You’re looking for private equity firms that stand to profit from “crisis” or substantial change.
  • There’s no guarantee it’ll happen again, but one closed end fund yielded over 30% when the Financial Crisis of 2008 ended. Of course the yield came way down. If you know what you’re doing and you can accept the risk, you might consider using leverage on your investments.
  • Bitcoin could/should/would do well during a crisis. You can buy Bitcoin through CoinBase, here. If you buy bitcoin using that link, we both get $10 in bitcoin.
  • You can use “puts” and “calls” too. A “long put” can insure a holding. You can use a “put” to sell short or bet a stock will go down.
  • Keep in mind the governments of the world and the Federal Reserve can manipulate the money supply and enact laws. Markets could be closed early and other actions could be taken. Look at the current coin shortage. You and your team will need to keep abreast of new laws and policies.
  • Remember, the time to purchase stock is when there’s blood in the streets.  Deals should abound. Be ready with cash. Don’t worry if you’re not buying at the exact bottom. You can purchase shares incrementally. Use the rest of this site if you want to raise more investment capital. Use the music videos and motivational quotes at this site to keep motivated.
  • No matter how bad things get, whatever you do, don’t give away your rights or anyone else’s. The benefits of surrendering your rights, responsibilities, and assets are temporary.
  • If you can profitably sell gold and silver during a crisis (inflation) consider buying rental real estate with the proceeds. If real estate isn’t an option for you, stick with quality stocks. Don’t get big headed with a huge win and then lose it on your next investment.
  • In the meantime, don’t get shaken out of good (winning) stock holdings due to fear inspired by gold marketers, etc. Those guys are wrong all the time. Panic selling is rarely rewarded. Do keep some cash on the sidelines though. Watch for increasing significant layoffs or worsening economic turmoil before selling. TV and for the sheeple news want eyeballs (viewers). They’re not after your investing success.
  • Mega news sources want the population divided, scared, and willing to ask the government for (temporary) “help.”
  • Use logic, math, and facts despite any type of fear or confusing fake news or criticism from people in the ghetto.
  • Disciplined trading is essential. Stick to your investing plan unless it is proven wrong. Be sure to have an exit plan. At what price do you intend to sell? As an assignment, think back to several years ago when silver shot up in price. LTBH might not be the thing to do.
  • For a good but not complete economic threat analysis and for inspiration, read Atlas Shrugged, by Ayn Rand.
  • When the proverbial “sh*t does hit the fan.” discuss it with us here in our chat room at this site.
  • Some “real” economists say negative interest rates could trigger an economic collapse.
  • What comes after a crisis?  What would the new economic environment look like?  See the conclusions of Atlas Shrugged and the Black Book of the Master Mind 4th ed.
  • Again, be alert for fake news tricking you into selling precious metals or other assets for far less than market value, etc.
  • Create a watch list on Yahoo Finance or your brokerage of the etf’s listed above and others you find interesting.  Follow the news feeds for each instrument (ETF) and weigh the sources and conclusions.
  • What companies do you rate as the most anti-fragile or resilient? Which companies could emerge from crisis stronger or at least in a better position than most?
  • Gold and silver miners could/should do better than etfs or physical metals. You can read newsletters or begin researching etfs and individual mining stocks yourself.
  • If you can remember most business and economic principles are the same in times of crisis, this should help you avoid scams. Yes, investing may be tougher due to crisis but the principles are the same. Know what you own.  Note fear and greed of the masses.
  • If deflation were to strike, you could take advantage of some alternative assets and expensive toys, if you’re in a very good financial position.
  • I would pay off high interest debt and not take on any further high interest debt.  If/when inflation strikes, look into paying off low interest debt like loans and mortgages. I would not leave myself with zero capital after paying debt.
  • I will not go all-in on bitcoin, although I have some.  Bitcoin is definitely interesting. My teachers have always said never go all-in one one “investment.” I won’t start now.