How about investing in high tech?
So, if REITs don’t seem like a good investment in a bear market, where else do people turn to get a pop for their investment dollars? Dot-coms look promising to many investors again, notwithstanding the burst bubble from the early 2000s. Don’t be taken in, say Steve Hochberg and Pete Kendall in the August 2011 issue of The Elliott Wave Financial Forecast:
We can tell sentiment is ripe for a long bear market because the renewed demand for stocks of high-tech companies — which we discussed in June and at the beginning of July — spread further through the end of last month. According to recent articles, “Google is Going to $1,500,” Apple is “heading straight toward” becoming “the first company with a $1 trillion market cap,” and dot-com offices are putting in skate ramps and chocolate fountains. There’s no getting around it. If they want to compete for “the hottest coders in town,” they must “Party Like It’s 1999.” To complete the flashback to the NASDAQ’s March 2000 all-time high, USA Today ran the following headline on July 21: “Investors Again Pay Big For Dot-Com Stocks.” These are headlines one sees at market tops, not bottoms.
There’s a better way to handle your personal finances during volatile, bear markets than to try to seek yields and appreciations that are risky. Try a subscription to Elliott Wave’s Financial Forecast Service to get the big picture of where the markets and the economy are headed and how you can best prepare for the downturn.