How to Invest in an Inflationary Depression
- 1). Move your investments into commodities---but not energy. For example, oil prices risk dropping from reduced demand if there were a depression.
- 2). Move your investments into metals, specifically silver and gold, because of their liquidity. (Other metals, such as copper, can suffer a drop in demand during a depression when no building is going on.) Invest in the physical metal, not metal mining companies or certificates, which a depression may reveal to be less substantial than originally thought. Try an account at GoldMoney.com, using the Motley Fool link below in References.
- 3). Sell your rental properties because the fixed rents will become worth less and less with time. What properties you're left with, try to refinance before the inflationary period starts to take advantage of the (relatively) low rates.
- 4). Go with stocks that have strong brand names and aren't in technology. McDonald's, Yum, and Procter and Gamble are examples.