So where to now?

[barry_1]

I'm doing research on which sectors will do well in a recession(from own experience of the past) and also what others think and hopefully Simon might add something as to where to look as well? Will let u know,that is if any body is interested later next week.Interestingly enough the only two sectors that went up very well , were other than residential property and gold.I've a feeling that gold might be a knee jerk reaction and am doubtful if a strong rally can be maintained for any length of time as it does not earn income on holding and costs and there are limited uses for it and of all the gold ever in the world about 90% is there or can be recovered.

[shares]

Food. People still need to eat. Blue chip. Large companies tend not to suffer as much during a down turn. I'm not very bullish on property over the next year or two. I think the liquidity is drying up and that will slow things to a crawl.

[asylum]

Yep food is right Spar still a buy.

[SIMBA]

Food is one option but not spar, either pick n pay or checkers depending which side of the tracks you live.

[org]

Spar shows paper profits but I think they B'llsh@t, as they have a massive bank overdraft.I look always for only one thing on results:debt and bank overdraft.Based on this , many of our large companies are tecnicallly bancrupt,i am just waiting for the dominoes to start falling....could take moths or years, but sure to come.see my posting below...

[SimonPB]

Along the line of food companies; what about - drugs, tobacco, drink. But maybe more a case of them doing less bad then doing well. Also high end luxury? Article yesterday about all the new billionaires, now sure some will disappear, but how many will remain? The article suggested enough remain seriously wealthy to keep the luxury companies going?

[john_1]

Like Rupert says.."as long as men want to get lucky on a saturday night, and woman want men to prove their love, there will always be a market for my luxuary brands."

[SimonPB]

trader vic says SOL?
http://www.fin24.co.za/articles/default/display_article.aspx?ArticleId=1518-1522_2180454

[#9]

Dudes, it may be my erternally optimistic nature, but I don't think we is going to see a recession. At worst, a coupla quarters might be softer but I still reckon the Great Satan is going to weather this one. Global markets remain sound, and the US economy shows no sign of breakdown, even if it looks like a dude the morning after a bachelor party. Shucks, even the Dow is holding its levels nicely. Taking a defensive posture could be expensive.

[john_1]

Gravy is right medium term. I was reading tires for minning trucks are unavailable due to demand and second hand tires cost x2 the new ones.. but short term Take cover or go short.

[#11]

It's just that I see Friday's dow close as erring towards bullish - it closed red but did not push the 129 level - makes me think sellers are drying up. Buyers are also less confident that they can get stocks cheaper if they just wait. If anything, it's the bulls who are afraid - they could miss an upside and be left scrabbling to get back in.

[john_1]

Did you go short Gravy?

[#13]

Naw, I'm physiologically averse to anything that has 'short' innit. Still, buying on the dips. Caution, though, not to get into a falling knife scenario so nothing that's not on a long term level. (actually I know a dude who once tried his hand at knife throwin, dropped a blade and is now, erm, short.) Anyway, expect the dow to now test 129. If that holds, another short term bounce as it runs back up at resistance.

[CHATTYCHAT]

That 'short' story of yours reminds me of old Isak Beyers that came back from army as IB. When asked about the abbreviated name he reckoned he lost the sak eyers in a land mine accident.

[#15]

..he he.. good one, dude

[SimonPB]

Wayne McCurrie last night said the best defensive is cash. There after banks, but they will still move weaker - but less then the average market weakness.

[dimitrius]

I don't think you need to worry about a recession.