Wednesday, July 22, 2009

Best Investment During Recession

I receive several queries from readers like “Which is the Best Investment During Recession?”

Well, there is no as such investment that is god or bad during the recession. According to many Investors, During the time of Recession, Governments all around the world print more money to solve the financial problems at mass levels. So the value of Money (Currency) goes down. Right now we are passing through the same situation. The US Government has printed tremendous amount of Dollars and pushed into economy and now the US Dollar is the terribly flowing currency.

So some group of Investors believe that, Gold is the Best Investment During the time of Recession. If you want to save money during the time of recession than rather go for Gold Investments (Gold ETFs..etc).

While other group of investors do agree with the above theory, but they argue that Gold can protect your wealth against high inflation but the Gold can not give you the Capital Gains. In other words, Gold can not grow your wealth. According to these people, if you want to grow your wealth even during the time of recession than you should do “Controlled Investments.”

Now What it means by Controlled Investments? Well, Controlled Investments are those in which you have partial to full degree of Control over that Asset. Common Stocks, Bonds and Mutual Funds are not the Controlled Investments because you don’t have any management control over those Businesses.

But if you promote a Company than you become a Controlled Investor in that Company because than you will have control over that Company and its Business.

Following 2 are Controlled Investments -

01) Owning your own Business ( Holding the Common stocks of other people’s Businesses is not a Controlled Investment).

02) Real Estate (Rental Properties, Open Land for Rental…etc…)

Say for Example, I own this Blog. Now I have the Full Management Control over “My Journey To Billionaire Club” So this Blog is my Controlled Investment. And that’s why even during the time of recession, I don’t feel any heat of Recession. If I have invested my money in mutual funds or in Stocks (Someone else’s Business) than I would not be this much Financially comfortable today.

So the Controlled Investments are the Best Investments during the time of Recession.

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