Investing in a Financial Crisis

Readers Question: with econonomic scare, do you advise to invest? how do you predict inflation and interest rates will affect business?

I answered this question at my economic essay blog: Investing in a recession 

As I said in the post, I doubt a penniless Economist is the best person to ask for investment tips; but economists are, if nothing else, never short of giving advice

One thing worth bearing in mind is that some investments can give a good return during a recession. Even stock markets have been known to rise during a recession because analysts have already priced the downturn into share price.

If all else fails, you could always try the ‘pin technique’

This involves

1) A copy of the Financial Times

2) Chose a page.

3) Close your eyes

4) Use the pin to stab the paper – and buy the nearest stock or share.

At least, you save the £20 broker commission.