Today Id like to point out that when there is a global crisis the common reaction for the average investor is to sell. It is better to fight this way of thinking at a time where shares are trading way below their true value.
I would suggest that in times like these that you focus on solid companies with low levels of debt that perform well over a recession. To start you off Id like to give you 2 stock tips for November 2008.
You would be surprised that people actually go to the movies more during a recession. This is why Im hedging my bets and investing in Cineworld – CINE.L over the recession. Cineworld also have another novel idea whereby they are selling unlimited movie cards for a monthly fee. These cards allow the user to attend as many movie viewings as they wish. Similar to a gym membership but for movie buffs. This will ensure that there is a guaranteed cash flow into the business. You may not be aware but during the great depression there were large queues with people wanting to view the latest movies.
You also wont be surprised that people do not stop eating during a recession. The Restaurant Group – RTN.L is one of the largest independent restaurant groups in the country. In spite of challenging market conditions sales are currently running at 2.5% ahead of comparable figures for 2007. Overall turnover growth is 16% higher than 2007. I have therefore taken a punt with this stock.
If you keep your eyes open you can find companies to invest in without being a financial expert. Remember as you sit in the large queues at your local supermarket that this is likely to be having a positive impact on this companies revenue and share price.
Remember to read, read, read when investing in shares. Information is power folks.