Following ten options will guarantee you’re well placed to maximize your investment potential and agile enough to change tact if required.
by William Taylor, Mar 24 2015,
At least every year if not more regularly, you should be checking your investment portfolio and ensuring you have maintained your financial discipline. A review of your current situation will also allow you to refresh your money management skills. The following ten options will guarantee you’re well placed to maximize your investment potential and agile enough to change tact if required:
Bonds
It is important to keep an eye on your bonds and if possible it might be a good time to move away from open and closed end bonds. Individual bonds with shorter maturities may be a wise move. This would allow you to benefit from any interest rate rises which are likely to hit late in 2015.
Returns
Don’t be afraid to put some of your investment funds into a safe place. Anything like private credit or securities which have predictable and consistent payments is worth considering. The rate of return may not be as high as some other markets, but you will know what to expect and this can assist in planning for the future.
Law of averages
Research will show you investments that have previously provided returns above average. If these investments have regularly performed this way over the last ten or twenty years then there is a good chance they will do so in the future. Although this is not an exact science, the law of averages is in your favor and an investment into one of these stocks is likely to provide a favorable return in the long run.
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Soaring assets
You would be forgiven for thinking that an asset which has had a truly impressive year would be a fairly safe bet. Unfortunately, those that soar one year drop rapidly the following year. The opposite is also true. To make the most of this you should replace your soaring asset with one that has dropped rapidly.
Smartphone supplies
Smartphones are big business. You should be looking for who supplies the supplier. It won’t matter to you who is supplying the smartphones to the consumer as you will be making your money from the supplier’s supplier. In fact, the longer it takes to resolve a final supplier name the better it is for you.
Wood
Many people are now concerned with the environment and how humans can reduce the damage being inflicted. This is resulting in a much higher demand for wood which is gradually pushing the prices up. Some markets are now struggling to have enough to supply their customers. This will further push the price upwards and make wood a sound investment.
Spin-offs
These are often overlooked as new companies have no proven track record. However, if you pick a company with an excellent global reputation, the spin-off will already have both a proven record and financial backing. Suddenly the spin-off can seem like an excellent investment opportunity. Statistics sow companies in this category have experienced as much as 20 percent returns in their first year.
Precious metals
This is a fairly safe way to invest. Place between five and ten percent of your portfolio into precious metals. In the long-term, they’re always an excellent investment and short term gains can be made if the market goes down. This usually provokes an increase in the value of precious metals. Interest rate rises later this year are likely to have this affect.
Senior living properties
The baby boomers are gradually aging. This combined with better medicine means the older population is now starting to boom. Many of these boomers are now hitting 65 but still have plenty of funds available. Investing in a senior retirement property will give you a slice of this cake; a cake which is set to grow massively over the next few years.
Fine wine
Very few people look at fine wine as a good type of investment. That’s probably because the industry is only packed with professionals. Before spending any money on wine, you should understand and get a “feel” of the market. Start small and stick to wines with a proven track record, such s Bordeaux, Burgundy or Mouton Rothschild. Rather than take unnecessary risks and be sorry later on, it’s best to play it safe. There will be plenty of time for taking risks down the road.