Cruciferous Investment

How vegetables can provide boosting tips during economic slowdowns

Rich winter harvests, much like affluent recessions, are counter- intuitive doubles. How is it possible to reap rewards from a soil devoid of nutrients and repressed by weather conditions? Similarly, how do we make money from a stagnant market when all the signs point to negative growth? Understanding the environment is key, but if we take the right care, adverse conditions can be very fruitful.

The Cruciferous Vegetable is the Dalai Lama of the crop. They are wise, resilient and have protective and healing properties. Most notably, the common types (broccoli, Brussels sprouts, cabbage, kale, rutabagas and turnips) grow in winter conditions. The success of the crop very much depends on the aptitude and determination of the cultivator. Understanding the landscape and showing a willingness to overcome adverse conditions is as key to agriculture as it is to the markets, to personal finance and to making money. Here are a few key tips to becoming a Cruciferous Investor.

Avoid Pessimism

The conditions may seem harsh, but it is crucial not to let this become an excuse. Global slowdowns are made ever worse by the doomsday perpetrators of the market. Much like planting for the winter, the ‘voices that be’ will be ever pessimistic about your outcomes. It is essential not to conform to hysteria and allow sound logic to pave your path.

Plant wisely

There is a trend to companies that survive in adverse conditions. Much like the summer veg, here is a list of what to avoid in the proverbial winter:

Ø During an economic slowdown consumer confidence is low, therefore; luxury items are replaced with routine items; holidays abroad are replaced with domestic breaks; eating out becomes dining in; drinks with friends becomes drinks at home and so on.

Ø You can be rather sadistic about interpreting the environment: Dating agencies have proved to fair well from economic downturns (loneliness), Car dealers (weak currency) and bargain outlets (collapsing job market) also benefit. Charles Norton describes "Tobacco, aerospace and defence, and alcoholic beverages tend to be much less sensitive to economic cycles," and he notes that "gaming goes up year in and year out."

Ø Utilities perform in a recession. Established water companies, as well as agricultural and environmental stocks maintain good levels of performance.

Ø Buy-to-let investments do not bode well in the recession. You must be careful of areas like this, as well as others that aren’t so buoyant in times of hardship.

Steady growth is still growth

Finding your feet in the financial market may help your extra money go a little further. FX trading is considered the best place for beginners in the financial markets. It also works particularly well during an economic slowdown as you can speculate a depreciation of value in the market. Remember, cash is king during adverse times. It is sheltered from any dips in the share and property market, and it is disposable when other attractive assets become available.

Look to the long term

You can also use Financial spread investment in the long term, by buying into a market that you believe will increase in value. You may also want to consider the safe havens of the market. Gold, for example, is a particularly prudent place to invest during economic uncertainty. The Bond Markets can also secure investments, if placed wisely. Many cruciferous varieties will re-grow in the spring if they don’t manage to outlast the winter. Long term investments also benefit from foresight of positive future economic conditions.

Go it on your own

2.8 million people run a business from home in the UK. With the job market looking ever gloomy, it may be worth considering what skills and attributes you could harness on your own. The government create tax incentives for new businesses, and the start up costs can be as little as a computer and internet port. If all else fails, this may be a rather exciting enterprise.

Money, much like the cruciferous vegetables, does not become stagnant in times of economic hardship. It simply becomes governed by a different landscape. Like a farmer of land, it simply takes keen observation to reap the greatest rewards from adverse conditions.