How best to profit in these bad economic times?

Pawn shop stocks and firms that handle real estate repos for lending institutions. These will be sound investments

for the next few years. Still, I wouldn't avoid utilities and energy stocks to balance your portfolio and to generate some dividend income.

With inflation and a recession crude oil is by far the best investment for four years out.

Just find a company that is on the low but is very stable, or a group of companies such as OIH.

I'm just throwing a name out but DXO, crude oil has a 52 week high of almost $30 and closed at around $2.15 yesterday.

If you hold this for four years I can guarantee you a massive return.

If you invest $20,000 you could turn it into $280,000 once it reaches the previous year's high. It will also probably go higher than $30.

That said crude oil will eventually make a MASSIVE upside turn, it's limited and the U.S. doesn't have much compared to the middle east therefore we will be in demand of it.

Just be careful and pick a very stable company, some may go out of business or file for bankruptcy during the recession.

No sectors will do well during a deflationary period. The best way to ride out this period is to focus on capital preservation, and exploit FDIC benefits. For example.. Invest in CD's at distressed banks. They have high yields, but are protected by the FDIC. From my perspective, in the short term they are currently the ideal investment vehicle.

Don't bother trying to place your bets on individual stocks or sectors. Buy an index fund -- why bet on a single horse when you can have money on ALL of them?

Diversify!

The pros do not know what will do well. That is why the demand for US treasury's is so high. Right now, just not losing money is all you can hope for.

Stocks suck, Real estate rules!

If your going to do stocks, "Blue Horseshoe" says:

ENER

RGLD

SPWRA

FSLR

Watch and see...:-)))))