Friday, September 4, 2009

Interesting Ways To Play The Recession

I know I said I'd pick stocks out today, but I'll grab a few extras next week instead. The best way to get instantly rich in the market is playing the IPO game, but how many times have you sat down to buy a company that you read or heard about only to find that a stock is private? For those wealthier people you can make a few calls thru your broker and buy-in sometimes but for average Joes like myself we are shut out of the pre-IPO stocks. Sharespost has come out recently giving you the opportunity to buy shares of privately held companies such as Facebook, Tesla, Twitter, eHarmony, and more. I recommend you check out the link to see if this investment strategy is right for you. Tread lightly as the are few shares out there so the demand is inherently higher and that big what if of going bankrupt is there to as you have no idea what the companies books look like because they aren't publicly traded.

Another to do well in this recession is to play inverses. I know I know it's betting against the market and the stimulus plan. Two companies are legally doing this are based locally here in Maryland: Rydex SGI and ProShares. Each company sells mutual funds that run counter to the market. In a recession it's a different way to view the market. It's just as hard to bet a company to drop in price as it is to go up. Both companies have been around for a few years so you won't get caught up in any legality issues. Happy Trading!