Making money in the global shakedown?

[Andy2]

Japanese property (it's countercyclical to the West)
Commodities (india and China will drive these)

china sells goods to US , india sells services to US
both will be badly affected if US goes down

[sasguru]

china sells goods to US , india sells services to US
both will be badly affected if US goes down

Actually each is the biggest trading partner of the other.

[BlasterBates]

This is not a global shakedown, though admittedly it could become one. Currently this is a credit crunch in mortgage lending. The positive is that Asia is awash with cash, they don't quite know what to do with it. Well lets put it this way, they might not put into UK BTL, and they might be cautious for a while, but I think Asia and parts of Euope will continue to grow. Interestingly commercial property looks quite different, even in the US.

What looks good? Basically commodities, energy, industrials, and technologies. Japan looks poised for a recovery.

[beaker]

I've been buying undevalued blue chip Aussie shares (eg BHP etc). The market is up by 10% so far this year, taking into account current market jitters, plus dividends are generally good (4-5%). Take out a small margin loan and use the dividends to pay it off.

I've been agonising over buying a London property to live in... in a good location I think the worst that could happen is the price will go nowhere for a few years.

Although I did walk past a place offering 12% interest for 12 months fixed (Alliance & Leicester?) the other day. Worthwhile if you don't need the money for a while.

Japan and the Yen could well recover as the Yen has been depressed for so long partly due to Yen carry trade - now looking less attractive due to US rate cuts, hold on rates in most other western countries and recent rate increases n the Yen.

[sasguru]

I think what we are seeing is effectively the beginning of the end of Western dominance of the global economy and a shift to Asia. Not a bad thing for the UK. We were effectively tied to the US coat tails.

[ChimpMaster]

The positive is that Asia is awash with cash

Very clever M. Bates - you are indeed up to date on your information. China is changing its regulations to enable it's population to invest in overseas markets. This also extends to institutions in China. We all know that the country holds trillions of USD and it is getting ready to unleash these into the markets. Primary gainers will be Far East Asian markets. I have money in SE Asia incl. Hong Kong right now. HK dual-lists Chinese companies and currently these are way underlvalued relative to Shanghai.

In addition, Sovereign States (e.g. Dubai, Saudi) are getting ready to pounce. They're more interested in long term ownership of state assets (other state's assets). I don't have time/energy to explain this now - but I do believe that there are some equity markets/companies worth investing in through the near future.

[Nicky G]

Food, guns and a home is Canada. In the meantime oil shares and shares in agricultural businesses. Later on as the dollar plummets, commodities of all kinds, including metals, food, and fossil fuels such as oil.

Also Uranium mining companies. The price of Uranium is soaring. When you have made your money invest in my original suggestion.

[Clippy]

Food, guns and a home is Canada. In the meantime oil shares and shares in agricultural businesses. Later on as the dollar plummets, commodities of all kinds, including metals, food, and fossil fuels such as oil.

Also Uranium mining companies. The price of Uranium is soaring. When you have made your money invest in my original suggestion.

You sir, need to invest in a padded cell!

[wendigo100]

Booming China will bust. It is ignoring risk.

I heard this from a reputable source.