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What sectors are not affected by financial crisis too much?
#1
Hi, 
I believe that financial crisis will be happening regularly. And I am reading more and more that next one might be close. 
Which got me thinking, may be there are stocks that handle pretty well financial crisis or even soar. May be exactly these stocks/sectors are taking a beat in times like these, when the markets are high.  

Do you have any experience with these? What sectors are soaring when there is a crisis?
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#2
My thought is that not much "soars" during a serious, broad crisis, except maybe some commodities and the VIX. But some sectors likely get hurt less, such as consumer staples.

I think it is very hard to buy things in anticipation of profiting off of a future crisis. Far easier to make sure that you've got the cash on hand to buy great companies that become cheap when the crisis does hit.
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#3
By financial crisis, I assume you mean the big banks screwing up the backbone of the economy. Yup, they happen every few decades just like the oil patch, the FED, consumers overspending/overleveraging, a myriad of other reasons. What's new? Kerim pretty much answered it.
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#4
(10-09-2016, 10:46 AM)Kerim Wrote: I think it is very hard to buy things in anticipation of profiting off of a future crisis. Far easier to make sure that you've got the cash on hand to buy great companies that become cheap when the crisis does hit.

Agreed.  In the '08 recession (can't remember exactly which month), GE was $6 and AXP was under $10.  Saving cash for those opportunities 1x per decade or so can really turbocharge your investing life.
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#5
No two crisis' are the same.


I never had cash on hand in the past, but what helped was never letting up on regular investing through tough times. This time I have 20% in cash, I was up to 30% but have since allocated 10% back into the market.


My belief was that I never had "ENOUGH" to hold a cash position, even 20%. I felt like, what's the point? Might as well be fully invested.

My other fear, is that when there is a market correction I will sit on the sidelines too long and miss the rally.
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#6
(10-10-2016, 10:24 AM)rayray Wrote: I never had cash on hand in the past, but what helped was never letting up on regular investing through tough times. This time I have 20% in cash, I was up to 30% but have since allocated 10% back into the market.


My belief was that I never had "ENOUGH" to hold a cash position, even 20%. I felt like, what's the point? Might as well be fully invested.

I feel the same, now I have quite a large amount of cash standing by but it's for downpayment on a house, not necessarily for investing. But I don't mind using a part of it in case a correction comes. And margin accounts are awesome for buying the dips.
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