Monday, November 3, 2008

Profitable Business in a period of Global Recession

There are many profitable businesses you can dabble into in this period of Global Economic Recession. These are just ten of such investment ideas:

1. Farming and agricultural production: The food crisis in the world can be explored for investment. Land

is available for agricultural purposes in extensive quantities in many parts of the world. This type of Investment

requires a lot of know how and is capital intensive and highly profitable.

2. Entertainment industry: film productions and other entertainment industry activities are also profitable

investment options.
3. Manufacturing: Physical production of goods especially textiles and clothing.
4. Airline operation: Purchase of aircraft for freight and haulage operations or passenger flight operations
5. Automobile operation: Automobile rental operation. Purchasing and running a fleet of automobiles for

rental purposes.
6. Football club administration: Investment in a Global sport like football is a goldmine.
7. Land and estates: Acquisition of land and development into an estate of buildings of various types is a

very popular and lucrative investment in some countries.

Light capital investment

8.
Money market fund: Short term funds are easily investigated and less susceptible to fluctuations of interest

rates. Interest rate is usually negotiated before the commencement of the contract of investment. This type

of investment is still very safe.
9. Insurance and other life investment: Life Policy is a 'safe' investment. There are various types of life

policies to choose from. Always choose wisely and examine your investment needs before you pick up

a life policy. A tidy, low risk profit can be enjoyed from this type of investment.
10. Annuities are fixed payments agreed over a period of time. Annuities can be purchased from pension

fund administrators and life insurance companies worldwide with an agreed time for commencement of

benefits.

Other investment options you can try include:


  1. export of crops and other produce: the country you are based in will determine your choice of activity. If you are based in Africa for instance, agricultural products like Cocoa, Rubber, Cassava etc can be exported.
  2. Oil and Gas Exploration business.
  3. internet marketing: information products can be packaged and sold on the internet.
  4. book writing and the publishing industry.
  5. rental service operation.
  6. gas station operation.
  7. personal service e.g plumbing, mechanical, furniture making.



10 ways the Global Recession will affect your investment decisions.

The Global Financial Crisis or Global Recession as it is popularly referred to will affect your investment decisions in the following ways:

1. Your cash will be able to purchase less in the market because of increased prices.

2. You will have less investment options. Meaning, you will have less choice in the type of investments you can make in the market place. Since stock prices are plummeting. You cannot be advised to invest in some types of stocks; you will lose out. This does not mean you cannot entirely invest in stocks, it only means you must watch carefully before you invest and when you do invest; do not expect to sell off immediately. You may have to 'buy and hold'.

3. You will have to hold more funds in liquid form. Since you cannot invest as much in high value stocks, many people (especially risk averse people) will prefer to hold their funds in liquid form, that is cash or easily convertible investments. Some people will hold funds in their dusty piggy banks or in low interest bearing savings accounts.

4. You have to reduce consumption! The best way to battle inflation is to reduce your consumption of expensive goods. Must you absolutely have that next dress, the next bottle of wine or the next burger?

5. Your investment will yield less! South Korea and Taiwan have already cut interest rates. Other countries will most likely follow. This means that you will earn less than usual on investments in the standard market e.g savings and fixed security deposits.

6. Taxes will increase in order to fund the necessary bailouts and shore up the economy.

7. Goods and services will increase in prices. You will pay more for your needs.

8. Losses will be more easily made in a panic attempt to sell off high priced stocks and investments before they crash completely.

9. Big government projects which would have had a lot of public service impact will have to wait.

10. Loss of value on existing investments. As the share prices are going down what you had as investment value also goes down.