It will be interesting to see how the Fed reacts -- especially the FMOC and the Plunge Protection Team.
My $0.02 on investment advice:
1. Move out of stocks and bonds
2. Liquidate your IRA and 401(k) and take the tax hit
3. Buy gold as bullion coins and/or vaulted bullion
4. Buy agricultural commodities (corn, wheat, etc), either as futures or ETFs
5. Move out of US dollars and into commodity-based currencies like the Canadian, Australian or New Zealand dollars. The Euro or Swiss Franc would be my second choice.
6. Avoid silver and platinum; they are mostly industrial metals, and might take a hit in the recession
7. Avoid oil companies in the short term -- oil use will go down in a recession, and the price will likely follow.
8. If you have a big mortgage and still have some equity left, sell your house and move into a rental. Not pleasant, I know, but you'll come out ahead in the long run. House prices are likely to be going down for a long time.
9. Don't buy into the end-of-the-world scenarios. Even in the most inflation-ridden countries in the world, they still use money. The chances of returning to a barter system any time soon are very very low.
I've followed my own advice, and have done very well over the last few months. My overall portfolio has been up even over the last few weeks, in spite of the market decline.
