Gaining an advantage during recession/credit crunch

[Shnozz]

or a period of economic uncertainty before it gets highlighted that we have not yet technically entered a recession...

Reading today how Odey Asset Management did, with hindsight, the simple thing and shorted on British banks from 2006 and made a sizeable return during the financial meltdown, it got me thinking of what sort of reverse investment could potentially gain in the current climate (and dont say buy the very same bank shares..). A number of investers seem to be staying clear of the markets altogether and holding cash, but if one wanted to be more adventurous and try and steal a lead from a poor market what would they look towards?

awaits Pork Bellies...

Edited by Shnozz on Tuesday 5th August 11:21

[off_again]

Ever wondered how Banks still make a profit through these times of uncertainty? Yep, they bet on losses and a declining market. They still make a killing and ultimately someone pays.....

[NoelWatson]

I think the pain is pretty much priced in now. There is no point shorting house prices as the exchanges have them 30% off in 3 years. Credit markets are pricing in pain ahead. FTSE is on a historically low PE/high yield.

[off_again]

NoelWatson said:

I think the pain is pretty much priced in now. There is no point shorting house prices as the exchanges have them 30% off in 3 years. Credit markets are pricing in pain ahead. FTSE is on a historically low PE/high yield.

He use words that make no sense! Surely a new language?

[Shnozz]

NoelWatson said:

I think the pain is pretty much priced in now. There is no point shorting house prices as the exchanges have them 30% off in 3 years. Credit markets are pricing in pain ahead. FTSE is on a historically low PE/high yield.

exactly my point. The shorting ship has passed in most areas I would have thought and hence my question where PHers view any opportunities elsewhere. Holding cash is so very dull.

[Bing o]

Shnozz said:

NoelWatson said:

I think the pain is pretty much priced in now. There is no point shorting house prices as the exchanges have them 30% off in 3 years. Credit markets are pricing in pain ahead. FTSE is on a historically low PE/high yield.

exactly my point. The shorting ship has passed in most areas I would have thought and hence my question where PHers view any opportunities elsewhere. Holding cash is so very dull.

Not to mention at a time of inflation, not a very good investment.

I bought a FTSE tracker in 2002 when the markets had tanked - would have earned a 300% return in 5 years if I'd held it long enough (as it was, I took my profits and bought the Elise for cash )

[g4ry13]

Sell gold, buy low budget supermarket shares. But it all really depends on how long you're looking to invest.

Edited by g4ry13 on Tuesday 5th August 11:46