This is a follow-up on yesterday’s article about the recession that’s sure to come within the next year or two.
In bear markets people obviously flock to Gold and Bonds – that’s a no brainer after all, but did you ever imagine that you could turn incredible profits by investing in stocks as well?
At some point in time, the powers that be decided to make bull stocks and bear stocks for a lot of markets in the world. Most of Latin America, Europe, Asia, and America is represented pretty well in these stocks. The stocks are called Direxion Daily (Country/Region Name Here) (Bull/Bear) 3x Shares.
If you believe that a country is going up you would buy the Bull shares, and if you think the country is going to spiral down then you would buy the Bear shares. The 3x in front of it indicates that the stock increases and decreases 3 times that of the market it is made to model.
In my opinion it’s definitely not smart to bet against a country for an indefinite time period because the way markets are designed, they’re meant to go up over the long term – not collapse into bureaucratic nothingness. For this reason, you have to be smart about when you buy the bear shares, and timing is everything. The bull shares will EVENTUALLY get back to whatever price you paid for it, but it could take years. For example, let’s take a look at China’s Bull and Bear stocks – aptly named the YINN and the YANG.
Direxion Bull stocks are excellent to invest in during uptime’s, but when things go south it takes an awful lot of time for it to recover.
Direxion Bear stocks on the other hand are stocks that you can never recover from if you time it wrong. If you suspect that a market (s) going downhill, it’s almost never a bad idea to buy the Direxion Bear stock. It’s the FASTEST and MOST PROFITABLE way to make money during recessions. If you get in on it even after the initial few days/weeks of turbulence you can easily see profits still.
I mentioned earlier that when times get rough, the rough (and the rich) put all their money into gold and bonds. Why? The dollar is paper, it can lose its value at any time. Stocks are just certifications that prove you “own” a company that could be worth nothing tomorrow, and real estate can go from being a hundred million dollars to hundred thousand dollars faster than you can get an agent out to list it on the market.
Gold, however, lasts. It’s monetary value never fades, it’s sought after by the people with money at all times, and it’s stood the test of time – the notorious Rothschild family, for example, has been known to convert a majority of their assets into gold during trying times, and they’ve managed to make a large amount of their fortune in the later centuries by correctly buying and selling gold.
Rather than buying gold – which buying any substantial quantity of would cost a small fortune – consider buying the gold mining companies. After all, someone needs to keep producing gold or the price would skyrocket, right?
Gold mining companies have long had a soft spot in my investor heart, after all, Goff Corp. (Ticker: GOFF) – a gold mining company that struck gold (literally) by getting a permit to mine in South America, was my first penny stock. It went from a little under 14 cents to 64 cents in something like two weeks. Personally, I laid my entire hand on the table and won, but I don’t recommend anyone ever goes into penny stocks, it’s just too unstable.
Back to the topic of gold miners. The entire sector is having a dream year – just as it should be. After all, we’re coming off the first down year since 2011, and even in 2011 it fell just -.02%. After a year like last year, and the rocky start we had to start 2016, people started getting queasy and put their money in gold mining and gold. Two stocks in particular soared, and will continue to soar: Market Vectors Gold Miners ETF (Ticker: GDX), and Market Vectors Junior Gold Miners ETF (Ticker: GDXJ). It’s already run-up, but if you time it right, there’s no reason that you can’t make even more money. I’ll leave you with the beautiful charts of GDX and GDXJ.
In this article I went over 4 ways to make money in a Recession:
- Direxion 3x Bear Stocks
- Gold Miners
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