So, is it time to buy American equities and assets yet?

So, is it time to buy American equities and assets yet? Seems like there are some saviours out there: Barclays, Nomura, Warren Buffet(!) and the US government. Is this a good time to step in and purchase US Equities now before they start heading back up again. Or.... is the worst still yet to come? In English we say: Are we waiting for the other shoe to drop?

My Canadian shares are doing - alright. They've dropped, but not as much as much as my US shares, though Starbucks is still hanging in there.

So, where to invest?

US Financial services? Could be quite risky still. We don't know (nobody knows) the extent of the damage in this industry. The whole sector is "iffy". There is much to be revealed. However, once the news is out, then it is too late.

Gold? The precious metal is used as a hedge in times of uncertainty. There is a seasonal increase in demand due to the wedding season in India. Likely this seasonal variation is understood and, given the amount of gold bullion that is produced, it should not have a big impact on the price. You can "hold" gold in several ways: 1) coins (I recommend Canadian Maple Leaf coins) Did you know that Canada is the #2 producer of gold? 2) bullion - these are gold bars sold by the ounce - not much difference from coins 3) Certificates - I don't know too much about these. This enables you to purchase gold but you do not take delivery of it in bullion. 4) Shares in gold producing companies.

Find some broadly traded shares that have been oversold and are undervalued? Due to margin calls and investors having to sell off their positions to cover other debts, the broadly held companies may have been oversold and are trading below their true market value. ID these, invest and reap the rewards once the markets recover in due time.

Which companies and industries are least affected by this credit crunch?

If we are headed toward a recession - it is indicated - then which sectors and companies will be least affected by a downturn in the economy: which companies are recession-proof?

What countries are attractive for their equities and their currency?
Will the US dollar trend lower? They'll have to print more and more money just to solve the credit problem. They've also go their original (and growing) national debt, trade deficit, budget deficit and a couple of wars to finance. Printing more currency dilutes the currency, thus, lowering it's value and increasing inflation. A weaker dollar makes it more costly to buy foreign goods and cheaper for foreign countries to buy American goods. This can help build the domestic economy. However, with such a strong reliance on foreign oil, gas and energy costs will be higher for American with a weaker dollar.

How about the Japanese economy and the yen?

Or the European Union and the Euro?

I am interested in your thoughts. There is certainly more to follow.