The first thing I want you to do is to read the USA Inc. report written by Mary Meeker. I am quite an optimistic person, but even people like me need to be fed with information like this that borders on pessimistic to get a real perspective of where the U.S. is heading. While we’re on the subject of reading, let me recommend that I only recently picked up The Undercover Economist, which is sure to answer a lot of your elementary economics questions and more.
With this book, I am hoping to keep it simple and eschew the complex financial instruments that I have talked about and hopefully will dive into more later. Fiscal cliff has become a popular phrase as of late and it is something that I have talked about quite a bit already.
Actions to take now
- Explore and invest in mining companies
I guess the obvious choice is health care stocks now that Obamacare is saved for the next four years. But why enlighten you on easily observable stuff. That is why I went with these mining companies since commodities such as gold and silver will be the last resort for investors faced with an ailing US economy and falling dollar.
- Invest in Clean Energy Source companies
President Obama’s approach for energy independence was a stark contrast to Romney’s. Somewhere in the United States, electric vehicle manufacturers will be breathing a sigh of relief!
- Invest outside the United States
It really appears as though inflation could creep up and it could be even more rampant because of the fiscal troubles. The U.S. credit rating could be further downgraded because Obama’s plans for taxes and government spending simply don’t solve the problems facing the U.S. economy (don’t worry, even Mitt Romney’s didn’t). Embrace the global economy!