So, the economy is in a crutch, and you're worried about losing your job OR losing your investments. Here are some ways to make MORE money in a bear market, than ever before. I'm sure you've heard the "Buy low, sell high" phrase. However, no one seems to follow it. When the market is down, that's when the rich people REALLY make their money. They buy low. Buy as much stock as you can for that low price, but make sure you check their financial statements and understand their assets:liabilities ratio. An asset is something that makes you money, and a liability is something that loses money. if the company you're investing in has more liabilities than assets, where that's a recipe for bankruptcy. Buy stock in companies that have more assets than liabilities, and hang on to them. Don't get scared and sell for less thatn you paid. That's a huge mistake.
Another thing, don't get greedy. Hang on to your stock for a while, but don't get greedy, expecting to make more money than you already have. Here's a true example:
I told my friend, let's say John, for his privacy's sake, to invest in precious metals. He did. He bought as much stock as he could for $1,000 and a couple months later, he was up to $6,000.Ã‚Â I told him to sell, and put the $1,000 he originally invested with into another market, and that extra $5,000 into a savings account. He told me no, and thought he would make more money if he stayed in longer. I knew the market would fluxuate, simply because, precious metals goes up and down like a rollercoaster. So he ignored my warning, and left the money in there. The next month, he lost everything. That's why you should never get greedy.
Another way to make money in a terrible market, is to do some research on starting a business (alcohol and movies tend to do well in times like this).Ã‚Â Find a venture capitalist, and have them invest in your company. Make sure you've practiced for this, otherwise, if you're not ready, you'll be shot down.
YouÃ‚Â can write a book about anything. Get it published and collect royalties. Booksales do well inÃ‚Â bad markets, simply because, people want to get away from the real world, and live, if only for a brief period, in another. Plus, pirating books is more difficult than pirating movies, so your chances of making money is good.
Look at foreclosed homes and purchase one. Rent it out for an income, making sure your mortgage is covered by the renters. However, be careful when doing this, you may bite off more than you can chew, i.e. look for reasons WHY it's foreclosed.
If your backyard is cluttered, and you want to clean it up, sell those things on craigslist. Anything you don't use, or plan on throwing away, try to sell it. craigslist is free, and if it doesn't sell, oh well, you've lost nothing. You won't get rich by doing that, but hey, at least you're able to put food on the table.
Unfortunately, when it comes to getting laid off, there's nothing you can do. You can't change your company's mind by showing them how hard of a worker you are. My friend was laid off, and he was the best they had. BUT, if you are laid off, there are things you can do for compensation, like unemployment, and food stamps. I think the unemployment length went up to a year or so.
Things to remember:
1. buy low, sell high. Rich people make their money when markets are down.
2. create something that could bring in royalties
3. understand a company's financial statements, assets:liabilities
4. take a risk, if you don't, you'll never make it.