The current investing climate is absolutely the most atrocious that most investment professionals and amateurs have experiences in their lives. Stocks have been battered down by record amounts and other investments such as commodities and bonds have suffered due to the new risk of default present in once solid companies and the lack of demand due to the very poor economic environment. Short selling is the usual way to profit from declining stock prices but for most people there are two reasons they shy away from this approach. The first reason is that shorting is potentially riskier than going long a stock and is also more complicated and so for the amateur this is typically a bad option. Also, many professionals believe a snap back rally will occur making it risky to be short.

The only other approach to profiting is to invest in alternative investments such as commodity futures for select items that are recession proof and via forex trading. Funds that are employing these strategies although still often having been battered down are still faring much better than those funds that are predominantly invested in stocks. Given the volatility of the current markets you should examine your own portfolio and consider options for diversifying and hedging against the current downturn by employing some alternative investments with a portion of your invest-able dollars.