What would be your recommendation for investments in the following industries?
Suppose you believe that the FED/Central Bank is going to dramatically loosen monetary policy. What would be your recommendation for investments in the following industries: a) Gold Mining b) Construction
Public Comments
- recommendations for investments in the following industries after FED/Central Bank is going to dramatically loosen monetary policy. more money will be available and interest rates will tend to be lower. a) gold mining, sell b) construction, buy
- I'm not sure if I would go with either one. My first move would be to use a sector map [such as the one at smartmoney.com AND/OR barchart.com - which are both free sites]. After seeing exactly which sector "the Big Boys" are investing their money, I would find out which companies are in that sector and the ones which met my criteria are those where I would invest my money. Thanks for asking your Q! I enjoyed taking the time to answer it. VTY, Ron Berue Yes, that is my real last name!
- One thing to consider is that if the Fed cuts interest rates sharply, I expect that inflation will rise dramatically. If that does happen the price of gold will also rise dramatically. The U S government is essentually bankrupt and the dollar is rapidly becoming virtually worthless. As for construction, it might be worth investing in the construction industries in China and India.
- Gold mining sounds interesting. Residential construction is terrible. Energy Infrastructure construction might be good. I like Shaw Group in this sector: http://www.top10traders.com/ViewHolding.aspx?symbol=SGR
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