Stocks that will do well in another Great Depression

I'm seeking advice of person's regarding which stocks they think will do well in this coming recession/depression?

I note in the great depression of 1929 some stocks never recovered - for example many Railways stocks - even to this day have not recovered to pre-1929 levels - e.g. NYC - partly due to the crash and party due to the fact the age of the railroads was coming to an end.

I imagine financial stocks will take a pounding as normal.

But some things may be more recession proof - e.g. cornflakes, cereals - I noted in the last recession cereals producers (I'm talking breakfast cereals here) did well, because people couldn't afford more expensive foods and returned to the basics.

Are there any other stocks you think have similar qualities?

your thoughts?

 

google stock, don't think it won't be affected (not much more)

 

Imo Google and all other internet stocks can crash a lot..

Only companies that produce real tangible products will do good. Especially basic products that people can't do without (like food).

 

Google's stock has already been going down since last year. You might consider bread or bologna types of foods.

 

Its one of the stocks that is a prime example of why Mark to Market should be eliminated. It is WAY over valued, and it is this over valuation both in the tech sector as well as on Wall Street in general that has been partly to blame for the current mess.

The best place to put your money right now is into real estate.

 

I would not be thinking stocks right now. I would be thinking assets. With the way things are going the dollar might increase in value in the short term and we might experience deflation in the US. Time it right and move your dollars into assets just before the hyperinflation and devaluation of the dollar that will likely occur.

You don't want to be sitting on stocks or dollars when that happens, you want to have assets. That is my two cents anyway.

 

Mark to Market hasn't effected google

 

I wouldn't buy stocks. Perhaps some bonds if your looking to put capital somewhere.

And what is with your mark-to-market rants Mia? You make zero sense.

 

Sure it has. It's book value and stock price are no where near equal.

I guess I should define Mark to Market for you.

"The act of recording the price or value of a security, portfolio or account to reflect its current market value rather than its book value."

The whole problem with Mark to Market is that it bases a stock or securities values on solely on the market price, not the liquidity of the asset itself.

Unfortunately when measuring value, using the market as a metric, investors lose sight of the true value of the security they are purchasing. Many investors will leverage that over valuation that the market price has set against purchasing more futures or securities. The end result when and if the market begins to shift as it has, is that those assets lose their inflated value, and as such the investor is expected to make up for the difference. Since they don't have that difference, you've not only overstated your value, you now have overstated your losses as well.

In other words, MTM, IMO artificially inflates the value of securities thus resulting in an inflation of losses.

Mark to Market can make the most fucked of companies appear to have value which is not there.

 

I prefer stocks that are backed by assets. Things like cash in the bank, and real hard assets. Market value does not mean shit.

 

Of course they do. But many of them over valued those assets. That's the problem.

There is a difference between investing in the asset and investing in the investment house that invested in the asset.

 

It's probably not a good time to buy growth stocks when we're about to go into a time of negative economic growth(if we aren't already).
PG is a good old-fashioned, recession-proof, dividend-paying stock.

 

ehhhh. I don't think it's going to be another Great Depression, let's see over the next couple months if the bailout works.

The best thing you can do in a market like this is fine tune your position in what are normally premiere stocks, but you have to find that sweet spot to buy in.

Sony is at a 5 year low

 

Buy houses instead of stock then rent it out to low income families through the government housing program.

 

Stock - AIG

 

Anybody remember Digital computers. The 1987 crash led to their slow death.