4. Go for the gold
Gold has been a safe haven during at least the two most recent U.S. recessions. In the period between December 2007 and June 2009, which marked the longest recession since World War II, gold futures gained 18%. In the same period, the Dow Jones Industrial Average lost 37%.
During the recession of 2001, which lasted between March and November of that year, gold gained 3.3%, while the Dow lost 5.7%.
"We are close to a 'double dip''' recession, and gold is still the fear trade, said James Cordier, a portfolio manager at Optionsellers.com in Florida.
A recession would keep near-zero interest rates for longer in Europe and the U.S. and bring currency devaluation, both key pillars of support for gold. The metal, seen as the ultimate store of value, would do well in a recessionary environment even as its price marches higher, Cordier said.
"A double-dip recession is more reason yet to buy gold," he added. "Gold as a currency will become more and more popular."
"Gold is in the process of getting re-established as a reserve asset for most central banks because it's a natural hedge to their other reserve assets, mostly government bonds," said Dan Amoss, the editor of the Strategic Short Report, a newsletter dedicated to uncovering irregularities in financial reports.
"All central banks will be looking to increase their physical gold reserves in lock step with the increasing sizes of their balance sheets," Amoss added. "So should wealthy individuals. And institutional investors, as usual, will probably be last to buy gold at much higher levels."
MarketWatch reporters Claudia Assis, Myra Picache, Sara Sjolin and Kate Gibson contributed to this report.
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What's this new recession crap. We never got out of the last one.
I think it's time to start calling it what it really is and that's DEPRESSION.
get ready for ANOTHER recession really? Did not know the first one ended!!!! That show how much those people know about the real world. Typical washington bubble.
In June things were starting to turn around in my small business. By July people were waiting and expecting Congress and the President to take real steps to address our runaway spending and huge national debt. By August people were disgusted that the idiots in Washington hadn't done anything to solve the problem.
People in the US have lost all faith in their representatives to do what is right for the country. We do not need them to provide everything for us but it would be nice if they stopped screwing things up.
We need a leader to step up and make hard decisions. Problem is only political hacks seem to run for office.
I saw somewhere online today that Democrats have decided that we should only try and cut 1 trillion in spending over the next 10 years. Are they kidding? At our current rate of spending and debt service obligations we will owe another trillion by Christmas. The level of incompetence in Washington is criminal and we should get rid of all of them. At least we could save on their expensive private health insurance and salaries.
Economy spiraling out of control, and Congress takes a month off... Priorities?
We have lost the house, there is no more savings, unemployment is running out and the only thing left is debt. I guess we dont care about the Dow or the price of gold -- we care about finding a job at some sort of salary close to what we had--how much is gas and food.
"definition of depression includes two general rules: (1) a decline in real GDP exceeding 10%, or (2) a recession lasting 2 or more years"
Let's see it's been 4 years, national debt has more than doubled since 2004, and the GDP decreased by more than 10% in 2009 alone. Maybe it's a new recession...or maybe all of you talking heads have no clue what the F you're talking about. When will people stop believing the BS this government shovel into your mouths and stand up against this crap. The revolution that created this country was over less.
Sad to say but I'm afraid that it would probably take another Industrial Revolution to pull us out of this one. What was once the police to the world is now becoming the laughing stock to the world. Wake up America we are all responsible for what is going on now. If we dont individually pull our weight this country is going to fall apart and our children won't have a flag to wave on the 4th of July. Let's not let our forefathers down!!!!
Give me a break!
The recession has never ended. It is just the continuation with a bigger dose of reality.
Our country finances can be compared with finances of our homes. We try to balance our personal budget if we can not save some money in any month. So why our leaders think that they can go in debt and still be happy?
I fault all the politicians who have created this mess.
On top of that I see our leaders are happy to give free money to many countries including those countries who will like to kill us any moment they get opportunity. The audacity of thinking is that those moron leaders are helping others at the cost of our American people who need the help.
I understand that there are many countries where help is needed, but the charity must begin at home first.
We are in serious debt and we need to cut waste of expense ASAP.
We must balance budget like we are trying to balance our personal budget, and reduce wasteful expenditures immediately.
All politicians need to cut wasteful expense from their perks, and then they should seriously look for all the wasteful expense that we all can live without.
Regarding taxes we all are citizens of the same country so we all should share the tax load.
If any group including millionaires are getting by not paying taxes, then that is not correct either.
Finally All politicians need to give priority to the country instead of giving priority to the party they are affiliated to.
When did the last recession end?
Was it when unemployment went from 8% to 8.5% or even 9%?
Was it when homeforeclosures went from 1.5 Million to 2 Million or even 3 Million?
How about when job losses went from 300K a month to 400K each month?
Folks we NEVER ended the previous recession, this is just one level closer to DEPRESSION!
"CHANGE YOU CAN BELIEVE IN"..........
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