Question by  spinner7575 (26)

How do you invest during a depression?


Answer by  fesdre (655)

The best thing during a depression to invest in is FDIC insured CDs or U. S. Treasury bill, notes, and bonds. This protects you from most risks. During a depression I would stay away from corporates, because you never know who will go under. Take a look at today if you don't believe me.


Answer by  elecstorm83 (167)

To invest during a depression, have 10% of your portfolio in Gold. It's a great investment as a hedge. Aslo only buy stocks with dividends.


Answer by  jd1234 (13)

During a deflationary depression (like the Great Depression), the safe havens are cash and US treasury bonds, because the dollar value of most stocks and commodities will decrease. During an inflationary depression (Weimar Republic), you want gold and foreign currencies. Economists are still debating whether there is more deflation or inflation coming in 2010.


Answer by  Roland27 (16334)

The dollar is so inflated that it's not worth much anymore. So investing in stocks isn't a good idea. Gold is where the money is at.


Answer by  tamarawilhite (17883)

First, pay off any existing debt. This is a guaranteed return on your money equal to the interest rate the debt is charging you. This also frees up cash. Cash is king during a depression, and frees up the opportunity to buy up land, real estate, and commodities.

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