I’m going to keep this short and sweet this week because there is a lot going on, but the plunge is back on! Check it out below!
Where To Find Stability?
With all that is going on in the markets, there are some good deals in stable companies. The main sectors to consider are utilities (power, communications, water, etc.) and consumer non-cyclical goods (think commodities such as cleaning supplies and food). These companies have seen the least drop over the past few weeks of volatility, because even if we fall back into negative economic growth, consumers still need power and food.
Interest Rates
Mortgage rates have fallen to all time lows – following interest rates. I’ve shared this over the past several weeks, but really looking into agency REITs. These companies use the low rates to snap up mortgages, and pay out great returns. They are still good deals, although several have started seeing some nice buying action over the past week.
Stay calm over the next week, as I wouldn’t be surprised to see some more nasty down days.
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This post was written by...
Robert – who has written 317 posts on The College Investor.
Robert is the founder and editor of The College Investor, a personal finance site dedicated to young adult and college student finances. You can learn more about him here and connect with him on Twitter or Facebook.
{ 5 comments… read them below or add one }
A 4 digit Dow is in our future. 2008 all over again.
I do believe a 4 digit is in our future in 2012, but certainly not as bad as 2008.
These are some wild swings. The situation in Europe looks pretty scary. Come to think of it, everything looks a little scary. Who would have thought gold would approach $2000!
I am still not convinced all of this fear is warranted, would someone please work on convincing me? I don’t see 2008 all over again unless a shock from Europe brings down US banks, AGAIN.
I think some fear is warranted – especially fear about declining earnings due to a second recession coming. Is 2008 fear warranted? No. However, this slowdown is eerily similar to The Great Depression – a recession, some improving conditions, followed by austerity, then the country falling into a huge recession.