When domestic stocks are beaten down with no clear bullish outlook, it is sensible to look at international markets as a safe haven. However, this recession is not just domestic, it is global. A lot of third quarter earnings reports talked about international revenue growth and how much international exposure affects earnings. With a global recession, could we not say that earnings will be negatively affected as we see the whole world struggling? On the flip side, the sudden decline in commodities could lower costs for companies so that it all evens out in the end. With this said, where are the safe havens?
The BRIC countries are the safest plays internationally as even with a GDP decline, we are still looking at solid growth with greater demand. Domestically, the safe haven relies with the healthcare industry. As the baby boomers are reaching retirement and are the single largest age group right now in America, healthcare will see increasing earnings growth over the next 20 years. Recession or not, the elderly will need their drugs. As always when looking to invest, make sure you research everything. Whichever way you decide to go, know that you are investing for the long term as domestic and international markets try to recover.
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CJ,
ReplyDeleteput dates on your postings so we know when you posted this stuff, not just the time.
look above the safe haven title. it has the date there. i did these three on the 13th. thats why they arent individually dated. im going to blog again tomorrow after the feds rate decision. it should have december 16th above that title. thanks for being my first follower shawn
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