In all the doom and gloom in the stock markets, there is one safe place to invest. To understand where to invest, you must go back to basics.
When it comes right down to it, there is one nuclear bomb proof place to invest your money. The reason it is so indestructible is because no matter what shape the global economy is in, we all need to eat.
The food industry will survive right down to the end of humanity, and because of that it becomes a good place to invest. The basic food companies being the ones that provide the raw foods like orange juice and produce are top choice. Dairy is also included in this group. The second choice is meat and poultry companies. The third choice in the food industry are along the lines of produced basics like Coke and Pepsi. A cold Coke goes down so well on a hot day. Companies that produce beer and other non necessity items should be avoided.
The second group is the energy group, as much as some may be angry as the cost of energy being the cause of this mess, it is still a comfortable place to invest. Natural energy like wind and solar are the next generation of energy, so this will be a growing place to keep money in. This however will depend on the outcome of the US presidential elections. If the democrats get in office, this can be a gold mine. If the republicans get in office, then this will be stuck on standby as they suck up to big oil. The profit will come from the building of infrastructure in renewable energy. Other upstart alternate energy industries should be carefully considered.
The third group is companies that manufacture and sell basic clothing. You can forget about anything more than jeans and other basics.
The fourth group is transportation. More specifically public transportation. In general in the United States people will be shifting from expensive private transportation, to more affordable public transportation. The trend will continue until next generation private transportation becomes available. Next generation is anything that does not use oil based fuel. Although this is a good place to invest, it requires very careful consideration and research.
The fifth group becomes even more difficult to decide on. This being any company that looks to cut the bonds of old school thinking and strive forward with new technology and to boldly go where no man has gone before.
Other considerations are companies that will rise as a result of global warming. All the changes that will result including population shifts and infrastructure building are what may be a sixth group, but realistically this is one to four years away before it becomes difficult to keep up with natures damage.
The bottom line is there are places to invest if you can keep the basics in mind. Investments should be based on the new school and not the old school. Do that and you will survive our own self induced misery. Knowing when to buy can be found in Connecting the Dots story “Sheep mentality” published just before this story.
Nice writing. You are on my RSS reader now so I can read more from you down the road.