Comments on: Should you buy defensive stocks during a recession?

By: Mack rvs

Mack rvs — Tue, 08 Dec 2009 12:56:00 +0000

Thanks for pointing out those ideas on investing during recession. Great article.

By: warlock

warlock — Tue, 05 May 2009 18:56:13 +0000

But one important character that separates US from all other developed nations including Japan is demographics. with a high growth population ( child birth plus immigration) the gdp has to grow once the dark clouds go away.

By: Jae Jun

Jae Jun — Thu, 19 Feb 2009 07:11:47 +0000

Manshu,

I do find the point you bring up interesting. I hadn’t thought of it that way.

By: Manshu

Manshu — Mon, 16 Feb 2009 16:50:22 +0000

@Wide Moat

Thanks for the comment, you bring up an excellent point. What happens if an economy faces a – lost decade (or a decade and half) kind of situation?

I think, in such a situation – you will see something like the Yen Carry Trade emerging in the United States. If any country were to enter such a long period of stagnation – I don’t see what they could do, other than invest abroad, which is what the Japanese did.

It’s a really difficult call though.

Manshu’s last blog post..Stock Market Tips

By: Wide Moat

Wide Moat — Mon, 16 Feb 2009 15:11:23 +0000

In principle I agree with you. Yet, you seem to imply that the rebound, in the economy and the stock market, will follow relatively quickly. If it does not, and instead, we have now entered a long period of economic stagnation (or par with Japan’s lost (two) decade(s)), then the case for defensive stocks may hold for some time.

It looks like the crux of the matter is whether or not the economy is poised to bounce.

Wide Moat’s last blog post..Ebay’s Potential Problems

By: Manshu

Manshu — Mon, 16 Feb 2009 12:06:40 +0000

Thanks for having OneMint here!