The best advice? You should have at least part of your investment portfolio dedicated to companies that are likely to turn a profit even in a down period. The key is finding counter-cyclical growth.

There are a number of companies out there that fit that bill, but the ones that seem most promising in this market are the ones that can both make a profit during the downturn and see an even greater increase when the economy hits its stride again.

So what strategies work best in this economy?

Smart investors will look for the niches that benefit from the new marketplace. For instance, with all the talk about the mortgage crisis, a number of large banks are looking to get these mortgages off of their books. It’s in the banks’ best interest to clean up their balance sheets, and so they are willing to sell these assets at a lower rate than most people would guess.

The end result? Banks are now willing to get rid of assets like mortgages at dimes on the dollar. Smart companies (particularly those with the wealth management experience and knowledge to do proper analysis of the loans) can pick up performing loans at a low cost. And because the initial investment was relatively small, they only need a portion of the total number of mortgages to follow through in order to recoup their investment and see a strong return. Just think of what returns they can see when the economy becomes stronger and the rate of foreclosure returns to a normal level!

Another thing that people need to consider is that, even in the worst of the housing market troubles, when foreclosures reach a 6% rate on an investment that holds hundreds of mortgages, 94% of the loans are still performing! If you do the math, the return on investment is higher in this area than in almost any other area.

It seems incredible, but the secret is starting to get out. Take advantage of the economy, before it starts to take advantage of your investments…