I’m still not sure we’re really in a recession. “Experts” have been talking about a recession since January. I figure by the time they decide we’re in a recession, it will be over. But we do know that the only certainty is uncertainty. And business people don’t like uncertainty. So, what kind of business should you get into or invest in, and how do you run your business in uncertain times? Over the next few posts, I’ll give you some ideas and I’d like some of yours. For example:

1. Create a business in a recession-proof industry. That’s an industry in which people will continue to purchase, even in a recession. The food industry is probably the most recession-proof I can think of. Everyone always needs food. Other essentials, like diapers, toilet paper, and other things that everyone needs that wear out and need replacing come to mind. Clothing probably isn’t recession-proof. I have the ability to do without buying clothing for a good while (well, not forever, but you get my meaning). What other industries should boomers invest in and have businesses in?

2. Find businesses that cater to customers who don’t care about recessions. I’m talking about the very rich, people with lots of discretionary income. They still want what they want, and they are willing to pay for it. “Concierge” services are an example. A new type of business, concierge services cater to the needs of people, finding hard-to-find items or providing very personalized services.

Next, what can you do to keep customers in uncertain times?

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There is a shortage of containers for shipping goods from the U.S. to other countries.  Shipments are backed up for 3 months on refrigerated containers.  The trade deficit for the past month is at its lowest level since 2001.  Gas consumption is down substantially.  The dollar seems to be holding at about 150 Euros.  India seems to be running out of cheap labor to support its own economic boom.  Like the song states, “The times they’re a changin’.”

Well, that’s good news, because there’s always money to be made in changing times.  You just need to be sharp enough to figure where.  If you’ve invested in companies that do lots of business overseas, you’re doing well.  If you’re invested in retailers, you superior hope they are on the ball and cutting inventories.  If you know something about ocean shipping, you could make a buck or two.

Lots of people are still paying sub-prime mortgages.  Maybe they’re hanging on in hopes of a bailout from the lenders or the Federal government.  It won’t be as good as they hope or as bad as you fear.  Lenders are being much more cautious then they been in a long time.  They are charging higher fees for loans.  The lending processes are require more due diligence and that’s costly.

Anyway, the rate at which money is flowing in the housing sector is down to a crawl.  Liquidity is a real problem.  The question for someone buying in today’s market is “Can I afford to park my money for the next 10 years in this piece of real estate?”  If the answer is yes, purchase that distressed property.  If the answer is 5 years, think again.  Real estates take a lot of time to unwind.

Credit card debt was up substantially last month.  That might be due to the price of gas, because mid-level retailers are getting hit hard.  On the other hand, people can’t tap their home equity.  So, maybe capital flexibility comes on the credit cards.

Is this a good market to make money?  Sure, especially if you’ve strong nerves and can stand a loss for a period of time.  Long term investors will make money because the rules of the game will change a few more times before things become clear.  Remember to keep an eye on liquidity, your own and those things in which you invest.  Lastly, don’t invest in anything that keeps you from sleeping at night.

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Filed under: Estates

The listing for the much-talked-about Brooke Astor apartment has hit the market. Mrs. Astor, who died at the age of 105 last year was one of the grand dames of New York society. Her home at 778 Park Avenue is considered to be an exceedingly prime New York co-op. The five-bedroom apartment has high ceilings, six terraces and five wood-burning fireplaces. A reception gallery with a wet bar, leads to a living room with a wood-burning fireplace and views up and down Park Avenue. The famed corner library has gleaming red laquer walls (the Real Estalker Mama chillingly described them as looking as if they are “dripping the blood of the under-privileged”), a wood-burning fireplace and French doors opening onto two terraces. The formal dining room also has a wood-burning fireplace and French doors leading out to a terrace. The kitchen includes a pantry, service hall, and three maid’s rooms, a set-up which worked well in Mrs. Astor’s days but might now be reconfigured into a huge eat-in kitchen and family room for today’s owner. There is an additional bedroom that can be used as a maid’s room or reconfigured to be a second bedroom with ensuite bath. The private quarters include a sitting room with terrace, a separate powder room, and guest bedroom. At the end of the hall is in a corner room with a lovely wood-burning fireplace, terrace, and views toward Central Park. There are 20 closets. This co-op is listed at $46 million.

Only the very, very wealthy can apply to get into the Rosario-Candela-designed 778 Park Avenue co-op. As Max Abelson of the NY Observer pointed out, any potential owner will have to put 100% down and show more than enough cash to pay the steep monthly maintenance of $17,251.

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Continue reading Brooke Astor’s Co-op, Estate of the Day

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Pimp Your Work Asks: Do you still use a fax machine? How about your company? How often do you fax? Do you think it’s old technology that’s on its way out?

To participate, simply answer the question in the comments.

Photo Credit: Image by Celine Roque from Blue Rabbit Media

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GLOBAL MARKETS-Stocks skid on record high oil, dollar rises - Guardian Unlimited
SINGAPORE, May 8 (Reuters) - Oil’s relentless push to yet another record high pressured Asian shares across the board on Thursday, raising fears that inflation — and central bank measures to cool it — would hurt consumer spending and profits. The

Stocks dive on oil’s rise, AIG’s cash woes - Chicago Sun-Times
NEW YORK — Wall Street fell sharply early Friday as investors contended with wider-than-expected losses at insurer American International Group Inc. and another worrisome spike in oil prices. AIG’s loss for the first quarter rekindled investors

UPDATE 1-Toronto stocks slip as resources retreat - Reuters
TORONTO, Might 9 (Reuters) - The Toronto Stock Exchange’s main index fell on Friday, as resource shares were hit by profit-taking after a strong run amid soaring oil prices. The materials group led the way down, giving up 2.3 percent, while its

Banks and insurers lead fall in European stocks - Reuters UK
PARIS (Reuters) - European stocks dropped in early trade on Friday, falling for a second day in a row, led by financials after U.S. insurer AIG (AIG.N: Quote , Profile , Research ) posted a $7.8 billion quarterly loss, hit by bad credit-related

China stocks fall on inflation news - Boston Globe
SHANGHAI, China— Chinese stocks fell Friday as newly released inflation data revived worries of further credit tightening. But late in the day, bargain hunting in pharmaceutical and food shares helped trim losses. The benchmark Shanghai Composite

Stocks dip on AIG and oil - CNN Money
NEW YORK (CNNMoney.com) — Record oil and gas prices and a big quarterly loss for Dow component AIG were among the factors pressuring stocks Friday morning. The Dow Jones industrial average ( INDU ) lost 0.6% over an hour into the session. The

Italian Stocks: Telecom Italia, Saras, UniCredit, UniCredit - Bloomberg
Might 9 (Bloomberg) — Italy’s S&P/MIB Index fell for a second day, declining 511, or 1.5 percent, to 33,571 in Milan. Futures expiring in June fell 481, or 1.5 percent, to 32,715. The following were among the most active stocks in the Italian market

Opening Glance: Most Internet software, services stocks dip - Boston Globe
NEW YORK— Internet software and services stocks mostly declined Friday morning with the overall market after insurer American International Group Inc. reported wider-than-anticipated losses and oil prices continued to rise. How key Internet

Metals - Copper plunges as stocks rise - Forbes
LONDON (Thomson Financial) - Copper fell on rising stocks, falling demand from Asia and as equity market weakness re-ignited fears of lower demand ahead. The London Metal exchange reported, in a daily note, that copper stocks across the world rose

Stocks decline as oil prices creep higher - Forbes
Stocks sank Wednesday as oil breached $123 per barrel for the first time, fanning investors’ concerns about the effects of rising prices on already strapped consumers. Even after the Energy Department stated both crude and gasoline inventories in the

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Stocks lift even as oil prices soar near $123 a barrel - Forbes
Wall Street reversed early losses to trade higher Tuesday, as investors monitored the movements of record-high oil prices but still laid bets that the economy and companies are in recovery mode. Crude oil climbed to a record near $123 a barrel on the

Japanese trade team to inspect North Dakota wheat - BusinessWeek
A Japanese trade team will be inspecting wheat breeding, production and marketing during a visit to North Dakota, the state Wheat Commission said. The representatives of four Japanese milling companies on Thursday and Friday were to meet with wheat

Oil companies settle MTBE groundwater suit - International Herald Tribune
NEW YORK : A dozen oil companies concurred to pay $423 million (217 million pounds) in cash plus clean-up costs to settle litigation over groundwater contamination from the gasoline additive, MTBE, lawyers representing public water utilities and public

Oil firms to settle MTBE lawsuits - CNN Money
NEW YORK (AP) — At least two major oil companies stated late Wednesday they have concurred to settle lawsuits over the use of the gasoline additive MTBE, a potential carcinogen that has been found in drinking water. Representatives of Valero Energy Corp

MTBE settlement could grow - Houston Chronicle
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Drug companies defend TV advertisements before Congress - MSN MoneyCentral
Merck & Co Ord Shs ( MRK ) Stock Quote , Chart , News , Add to Watchlist WASHINGTON (AP) - Some of the nation’s largest pharmaceutical companies defended their Television advertisements Thursday from Democrats pushing for tougher restrictions on what they

Senate Democrats unveil new energy tax plan - MSNBC
WASHINGTON - Democrats in the U.S. Senate on Wednesday unveiled a new energy package that would revoke $17 billion in tax breaks extended to big oil companies like Exxon Mobil Corp and slap a 25 percent windfall profits tax on firms that don’t invest

Technology Group Plans Wireless Network - New York Times
SAN FRANCISCO — A who’s who of technology and telecommunications companies announced Wednesday that it intended to build the first of a new generation of nationwide wireless data networks. The consortium includes a disparate group of partners

Senate Democrats seek to tax oil companies - Boston Globe
WASHINGTON— Senate Democrats on Wednesday called for a temporary windfall profits tax on oil companies and a rollback of $17 billion in oil industry tax breaks as part of an energy package. The proposal also would impose federal penalties on energy

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