by Mj Ferruzza

Created on: June 19, 2008

While the economy is in a downturn
there are some savvy investment tips
an investor can use to keep his portfolio
active and growing. These tips are based
on logic, common sense and are not mired
in some financial institution's mish-mosh
of the "buy our product" mentality.
I list the Top Ten Ways to Invest and Win
in a down turned economy:

1. Diversify. Stocks and the stock market

are fine, but buying collectibles or precious
metals and jewelry work fine, too! Collectibles
can become readily available at estate sales,
knick knack shops or at auctions. Why so readily
available? When the rich need to free up cash,
they tend to dump non-essential assets at a deep
cut price. When the economy swings you may just
find you made deal of a century in antiques, art
work, stamps or more.

2. Options. If you are an active stock market trader
may I suggest you start an option account. When you
do you can buy puts on a stock at an affordable price.
This means if you see a sector dipping, you can profit
when the stock dips even lower. And then again on calls
when the economy turns and blasts that same sector through
the roof.

3. Buy and keep the junker. Want to save money? Stop
making payments on a car. Buy it in full and hold it.
Keep in maintained and you will save thousands over the
course of a few years.

4. Invest in yourself. Learn a new skill or trade.
A part time job on the weekends, even for only a matter
of months, can get you out of debt almost immediately.

5. Mutual funds. Buy the same amount of stock every month.
In hard hit months you will receive more stock and it
just builds and builds over time. Best way to start a fund
is to front load it with as much as you can and maintain a
conservative amount of investment monthly after that. No fee
funds are the best!

6. Cash in the closet. Take 5% of any money you have in your
pocket at the end of the day, week or month and stow it in a
jar or container in the back of your closet. Over time, you will
have saved enough for an emergency or two.

7. Stop buying lottery tickets. But if you pay yourself half.
That means if you buy a 1 dollar ticket, put an additional dollar
in a hideaway place. If you buy a 5 dollar ticket do the same. At
the end of the year, tabulate which made you more money. The lottery
wins or the money you halved and saved.

8. Invest in a friend. They may have ideas, goals and rewards that
far outweigh cash. I have a friend who was going to open a bar.
I volunteered to help paint and clean the place before its opening.
I even did his website. All for free. Now years later, I still get
the red carpet treatment when I visit the place. It impresses all
the clients I take there.

9. Money is energy. It takes energy to make it, spend it and of course
save it. Most people who have large portfolios are up on all the
economic trends. They keep on top of their investments and their
brokers or managers. The best personal broker you can have is one
you can train to make your money work for you, not them.

10. A recession will pass. Be sure to see the trends that swing the
economy in the other direction. Buy low/sell high..but be sure that
you are buying quality over a whim or a wild tip.

Good luck!

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