How to Cash in while the economy is sucking

So right now everyone is rushing to get out of the market because of the recent mega-failure of Lehman brothers, the acquisition of Merrill Lynch by Bank of America, and bailout of AIG by the government, and the possible merger of Wachovia with Morgan Stanley. It seems like the economy is on the edge to collapse. But don’t be fooled, the economy will not collapse like it did in 1929. We have way more checks in place than we did back then. Right now is one of the best opportunities for you if you are looking to be rich a few years down the line.

Make no mistake, the economy will bounce back. It may take a while but it will and when it does stocks like AIG(which you can get for like 2 dollars right now), will rebound to ten, perhaps twenty times its currently value, which could make you a millionaire. Right now most people are looking at it as a seller’s market but you should look at it like a buyer’s market. If you have the money, I would suggest buying 10,000 or so shares of AIG right now and letting it sit. You won’t lose unless AIG totally goes under and as the government has shown, it will not let AIG completely go under. So, based on that AIG will indeed weather the storm and when the economy bounces back, it will too in a huge way.

Buying 10,000 shares right now will cost you $20,000. But AIG’s 52-week high is at almost $30, 15 times its current price. Even if its average is half of that, you will make a 800% profit once the market rebounds. These kinds of profits do not surface every day. Basically with the government helping AIG, you don’t have much to lose and everything to gain. AIG is also not the only stock that is like this. Right now many investment firms are in trouble with stock prices that are pitifully low to what they are actually worth. Right now is the perfect time to buy up these stocks at these prices and sit for a while and wait to reap in the profits once the economy rebounds. The problems with the dried credit lines will eventually be fixed and with new management and regulations, the economy will come back in a year or two. Right now is the perfect time to buy.