Good investment ideas may be lying around house

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In the slower-growth economy, consumers may be less willing to spend on luxury items products and services that aren't essential to daily living. |ret||ret||tab|

For example, they may postpone major purchases such as a new stereo system or new furniture, and they may not be eating out at restaurants as much. |ret||ret||tab|

But consumers will still need to buy food and supplies, no matter what the economy's pace. |ret||ret||tab|

At times like these, investors tend to gravitate toward larger companies that provide products consumers use on a daily basis. |ret||ret||tab|

You may use many of these items in your home, but have you ever thought of investing in the companies that make these products? |ret||ret||tab|

Looking around the house can spark numerous investment ideas.|ret||ret||tab|

The kitchen|ret||ret||tab|

Think about the items that are vital in your kitchen, but not necessarily glamorous. |ret||ret||tab|

For example, dishwashing detergent, laundry detergent, cleaning supplies and trash bags. These items will always be in demand. |ret||ret||tab|

Also, don't forget about the places where you get the food in your kitchen store chains.|ret||ret||tab|

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The bathroom|ret||ret||tab|

Like most people, you probably fill your bathroom with products made by defensive companies. |ret||ret||tab|

Defensive companies are those whose sales typically perform well regardless of the current economic climate. These companies make items such as soap, shampoo, toothpaste and deodorant, which are constantly needed year-round. |ret||ret||tab|

In addition, pharmaceutical companies, and their many drug products, are important in everyday life. |ret||ret||tab|

Prescriptions need constant filling and consumers will always need medication to maintain their health.|ret||ret||tab|

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The garage|ret||ret||tab|

When you think of your garage, the first thing that comes to mind is probably your car. |ret||ret||tab|

Although investors own millions of shares in the automobile industry, the stocks of vehicle manufacturers may not perform as well when the economy is in a lower gear. |ret||ret||tab|

In slower-growth economies, consumers tend to buy fewer new cars and instead may spend more money on maintaining their existing vehicles. |ret||ret||tab|

This presents an opportunity to consider companies such as car parts manufacturers, auto repair shops, and oil/gas suppliers.|ret||ret||tab|

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Other everyday items|ret||ret||tab|

Don't forget about the other products and services you use daily, both at home and at work. |ret||ret||tab|

For example, consumers and corporations are still buying more affordable computers and computer equipment, while office managers are still purchasing the everyday office supplies sold by general merchandise retail stores. |ret||ret||tab|

And don't forget about the utility companies. |ret||ret||tab|

After all, people need to keep their lights on and their homes warm.|ret||ret||tab|

A slower-growth economy does not signal problems for investors; it merely reminds them to be more careful about the companies they select as investments during such a period. |ret||ret||tab|

With a little help, you can find quality companies whose products are likely to be in demand for as long as your investment objectives require. |ret||ret||tab|

Keep in mind that investing in stocks involves risk. Your principal value will fluctuate with changes in the market conditions, and you may receive more or less than your original investment when your shares are sold. |ret||ret||tab|

Remember: past performance is no guarantee of future results. |ret||ret||tab|

|bold_on|(The preceding column was provided by Timothy M. Reese, vice president of investments with A.G. Edwards & Sons Inc., member SIPC.)|bold_on||ret||ret||tab|

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