Cuapa Asset Management

So, you’re thinking about investing. Maybe you are planning to retire, or for a child’s education, or for a house. Maybe you just like the peace of mind that comes with having a sizeable amount of cash that you sit on.

But the market is currently hectic due to the recession (or depression as many of us argue), and you have no idea which companies only exist because of temporary government subsidies, and which companies will be able to weather the storm and grow your money over the long term without going out of business.

Fortunately for you, there are a few sectors with excellent equities available on the market. Here are some suggestions for where to look for companies which will continue to grow despite the economic downturn.

Precious Metals

Because of the rapid inflation occurring in many of the world’s central banks, precious metals are more in demand than ever, and will be for years to come. This makes gold and silver mining companies perfect opportunities to invest in, and there are some great junior mining companies with low P/E ratios available on the market. Two companies which come to mind are Northgate Minerals and European Goldfields.

Food

Many things may be purchased less during the recession, but food is not one of them. There will always be a consumer demand for food and beverages, and food stock levels are at a low for recent years in the United States due to all of the producers which have gone out of business. This means that any company still standing is likely to move in to fill the void and make a profit. Produce companies like Chiquita Brands International and Dole may be worth looking into. If you can’t find anything domestically, check out foreign companies like Switzerland’s Nestle, or Japan’s Asahi Breweries. Even first level producers like Norway Pelagic, which is a fishery, offer decent dividends and growth.

Oil

Though there is a “green” energy craze occurring, the world is still going to need oil for the foreseeable future since newer technologies are still inefficient and are only purchased for ideological reasons or because they have been artificially decreased in price by temporary subsidies. Check out the major oil companies, like Valero, North America’s biggest refinery.

Forestry

Not every company has stopped building, and there is still a demand in the forestry sector. However, a lot of it has moved into developing economies like Asia. The Hong Kong and Shanghai exchanges have some excellent offers, and there are even some Chinese companies listed on the American or at least Canadian exchanges like Sino-Forest Corporation which may be worth looking into.

Chemicals

There is still a demand for chemicals, even if domestic producers are producing them inefficiently. Developing economies like China may have good offerings, but even more developed economies like Europe offer this. Check out Germany’s Henkel, which has some excellent dividends and makes long term demand products like Loctite and Dial soap.