Safety is a relative word. What one investor considers safe, another may find too risky.

However, there are some stock sectors investors have looked to in troubled times as a safer haven than the general market.

No matter what the economy is doing, people still must eat and pay for utilities.

Wont Stop Buying

You can think of other goods and services that the public isnt going to stop buying, even in a recession – toilet paper is the classic example.

It is dangerous to assume that every company in these safe sectors is also a safe investment during tough times.

Investors should take a close look at individual companies before making decisions – not every consumer paper-goods company is a good investment.

How do you decide which companies to consider?

Look for a consistent pattern of earning across past periods of economic uncertainty.

You can do this on most financial sites.

A quick check using Yahoos stockscreener found 15 utilities with a five-year earnings growth of over 25 percent.

This is a way to get started with finding investment candidates. The next step is a more thorough analysis, but screens help you narrow down the field.

Many investors have a hard time dealing withfalling stock prices but for the wrong reasons. No matter how often you preach the virtues of the buy-and-hold method, the true test of courage comes when you watch your holdings nose dive twenty percent in one afternoon.

Anyone who has been through abear market knows that it takes tremendous discipline and dedication to stick to your guns while everyone elseliquidates their holdings. Plagued by images of depression,recession, and corporate layoffs, manic Wall Street becomes a breeding ground for chaos and faulty logic. Perfectly good companies begin selling for fractions of their true value, despite a lack of change in the long-term economics of the business.

Here are three fundamental truths that will help you deal with short-term market losses.

Truth One: You own a business, not a stock

What you are holding in yourportfolio is a piece of a business, not a stock. Investors who purchase shares of stock simply because they are going “up” or are going to be the “next big thing” are essentially gamblers. They buy a commodity with the belief (rational or not) that the next person in line will pay a higher price for it than they did. The problem is, this cycle can’t go on forever, and at some point, someone is going to look around, realize what happened, and bail ship.

In order to be a successful investor you must do two things. First, remove all emotions from each of your financial decisions. Romeo and Juliet were terrific lovers, but not very logical people (and look where that got them). Letting yourheart and emotions impact your actions is foolish in most circumstances, deadly ineconomic ones. Second, learn to separate the underlying business from the stock price; they are not the same thing (read that again). You’ve heard it said a million times;even a great company is a lousy investment if you pay too much for it.

Where to Apply For Credit

The best way for a beginner to get credit is to apply for a credit card meant for a beginner. If you already have a checking or savings account, check to see if your bank has a credit card for someone with limited credit history. If you can’t get a credit card at your current bank, there are still more options.

Getting a department store credit card or an oil company credit card is easier than a major credit card, like Visa or Mastercard. While these cards are easier to get, they also have higher costs. For example, the interest rate, which is essentially the cost of carrying a credit card balance from month to month, is higher on department store and oil company credit cards. On the bright side, having a positive history with one of these cards helps you qualify for a major credit card later on. If you pay your balance in full each month (which you should) you won’t have anyfinance charges.

You can also apply for asecured credit card. This is a type of credit card, that requires you to make a deposit to receive acredit limit on your credit card. Some secured credit cards will convert to non-secured cards after a certain period of positive credit history.

• How to Get Your First Credit Card
• Tips for Credit Card Beginners

How Old Should You Be?

Typically, a person must be 18 to receive a credit card. But teenagers under 18 may be added as authorized or joint users of a credit card. Some retail stores that cater to teens might approve a credit card account for someone under 18. Major credit cards, like Visa and Mastercard typically do not offer credit to applicants that are underage.

New credit card rules go into effect February 22, 2009, will require credit card applicants under 21 to provide proof of income or have a cosigner to receive a credit card.

What to Watch Out For

Avoid making several applications for credit. Each will show up on your credit report making it appear as if you are desperate for credit.
How Credit Report Inquiries Affect Your Credit Score

Be wary of credit card offers that guarantee approval regardless of your credit history. Offers like this are usually scams that end up costing much more than you spend.
Types of Credit Cards to Avoid