Even though the economy is in bad shape you can still find ways to protect yourself from the recession. You can still shift your money to government bond. When we are in a recession people tend to want to put their money in a safe place. You can use Forex to trade currency, but I don’t know much about it. I will leave to someone who has strong understanding of it.

Buying A High Yield Stocks
When I think about this approach, I have to tell you I don’t like it. I think owning company that pay high dividend yield in a taxable account doesn’t make sense very much. Would it be no different than owning a government sponsor bond? Where do you shift your money into when we are in a recession? I think owning high paying dividend stocks in a ROTH IRA make more sense because you don’t pay tax on that yield. I still own (PFE) Pfizer in my ROTH IRA account for long term. If your a large corporation and you can’t come up with a new drugs, then I think that is stupid. I believe that (PFE) Pfizer have the money and brainpower to come up with new drugs.

Shifting Your Portfolio To Bond
Do you think that shifting to commodity would be the ticket to fight inflation? I guess it would make sense if you got in early when commodity was cheap. When Treasury Bond is somewhere between 4 to 5 percent according to ValuBond that is not much at all, because it can’t even beat inflation now. Should you shift some of your portfolio to Treasury Bond? I guess you could shift some of your portfolio to government bond since you’re back by the government 100 percent.

Cash Is King
I think that putting your money in a online saving account would make some sense because you are safe from any market shift except the interest you get from it. You can find which banks offer the most rate by visiting bankrate.com. You also have to think about inflation because it is decreasing your buying power; plus you would have to pay tax from the interest in your saving account. This stuff is very confusing.

Final Thought
I don’t know what the best solution would be best but I am going to do what I been doing. I am going to buy more of what people dump. Yup, I am digging in the trash for the stocks that would be a comeback. If I had bought Sear Holding when people were dumping it and it was around at $10 a share, then I would have made a big profit from it. I was dumb back then not to recognize a business. When people only look at stock quote, they forget how much the business is worth.

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