Mike
Carruthers:
The economy appears to have taken a downward turn and conventional wisdom says
a bad economy makes it hard to make money.
Jordan Goodman:
But my view is the opposite.My view is when there's a huge change (as we're going
through right now) it means enormous opportunity for profit. Personal
finance journalist Jordan Goodman, author of the book Fast
Profits in Hard Times, says you can make money in a down economy if you know
where to look. For example, tax liens. When
somebody does not pay their property taxes, a lien is put on their house by the
local municipality. That lien is then lifted once they pay their property taxes
late. And at an assumed interest rate (anywhere of a low of about eight percent
to a high of about twenty-five percent in Texas for example) these liens are then
put up for auction and you can buy these liens. So as an investor the worst you
can do is eight to twenty-five percent return on your money. Of
course not all investment ideas are right for everyone and there is always risk
involved. But Jordan says, the point is a down economy does present opportunities
if you know where to look. Rising oil prices present opportunities. Oil
tanker stocks - these are the companies that own tankers that bring oil from the
Middle East (where obviously there's huge demands for their services) and they
tend to have yields of ten to fifteen percent. Some of my favorites would be Frontline,
Double Hull Tankers, Night Bridge Tankers - so you're getting very high current
dividend yields. And again with oil prices where they are the oil companies will
pay whatever it takes. Tomorrow
more ways to make money in a down economy - I'm Mike Carruthers and that's Something
You Should Know.
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