Okay, so the stock market is heading into the toilet, your a survivalist contrarian, and think “stocks take a nose dive, shit hits the fan, how do I turn a dime?” Building off why I said Gold: Don’t Buy the Hype, it would be un-ranger-like of me to not follow up without suggesting a few SHTF stocks to buy before the sky falls. There are plenty of suggestions, but in order to make the suggestions manageable we’ve got to break the likely SHTF scenarios down to a few manageable categories. Let’s consider these scenarios: 1) bird flu jumps human-to-human, 2) terrorists score another dramatic 9/11 style hit, and 3) peak-oil.
For disclosure purposes, Ranger Man must reveal that he is a member of a small investment club. This probably sounds fancier than it really is. What it really means is members get together once a month, everyone contributes $50.00, and votes on stocks to buy or sell. It’s hardly scientific, hardly professional, and hardly big money; BUT – amazingly enough – we turned a massive 44% return in 2007 – no lie! How? Energy stocks mostly (and a healthy dose of luck), but the exact details of which go beyond this post, and don’t really pertain to SHTF topics. I needed to make this disclosure, though, because the Feds love to nail people that buy penny stocks and post about how great they are in hopes of driving up the stock price so they can sell at a profit. I’ve labeled any stock I have a “vested interest in” green, though I hardly doubt my suggestions will affect their share price. Also, I’m not a financial advisor, and who knows when/if shit will hit the fan. These suggestions could be great, they could be lousy, it depends on the turn of events.
Bird Flu Jumps Human-to-Human
Eeeef, the prospects of this (or some other nasty, infectious disease) happening scares me more than many other types of scenarios. The thought of having to hold up in my house while the entire community falls ill is freaky – to say the least! But alas, we wouldn’t be capitalists if we didn’t profit from the woe! Think Tamiflu (www.tamiflu.com) – think Roche Holding Ltd. (they own it) – ticker symbol RHHBY.
Terrorists Strike Again
Move the engines of war! Lockheed Martin (LMT), Raytheon (RTN), and General Dynamics (GD) are the gold standards here. Lockheed Martin – just look at the pic on their homepage if you have any questions: www.lockheedmartin.com. Raytheon – missiles and missile-defense systems galore (and a whole lot more): www.raytheon.com. General Dynamics – subs, ships, combat systems and more: www.generaldynamics.com.
There are two lines of thinking here: 1) stock up on oil companies, because oil will be worth more, or 2) stock up on alternative energy companies, because their services will be in huge demand. If you pursue #1, consider companies that SERVE oil companies as opposed to the oil companies themselves. I prefer the latter, because who knows which oil company will get the the next big find? Diamond Offshore Drilling (DO) rents out huge offshore drilling platforms to the highest payer – www.diamondoffshore.com. Most new finds will be offshore, this company is the big player here. If you pursue the #2 option, Vestas (VWS) is the world’s leading supplier of wind power solutions – www.vestas.com. Personally, if I was investing for Peak Oil I’d go with the #2 option (or maybe both options). Number 2 would give you positive returns as well as a warm and fuzzy feeling that you’re making a positive contribution toward a cleaner world.
Go forth – get rich (or not).
– Ranger Man
BTW: blockade is breached in Gaza, Palestinians cross border into Egypt to buy goods. Is there a lesson here? What do they buy? Milk, cigarettes, fuel, rice, wheat, sugar, handguns, and more cigarettes. Check the article here.