Thursday, 22 November 2012

3 Questions to Help Determine The Best Investment Strategy

When investors are looking for a safe and dependable place to invest their hard-earned money, they encounter thousands and thousands of investing options to chose from, including traditional, alternative, hard assets, stocks and commodities. For those investors who are a little confused about where to begin, these three questions will help determine the most appropriate and effective, investment strategy:

Many investors start by asking themselves: What should I invest in?  Experts recommend conducting market research to find a commodity or asset, that is in constant demand (supply and demand). In most instances, investors have had to consider alternatives to common investments, in order to achieve their investment goals.

Second question to ask, is: How much risk am I willing to take, for the expected return on the investment (ROI)? It goes without saying that investors should always seek out low-risk, high-reward investing options (risk versus reward). However, investors should also be mindful that almost all investments, carry some measure of risk.

The third question investors should ask themselves is: How much money am I prepared to invest? Find out how much return has been paid out in the past to investors and what can be expected in the future. Have current investors seen a positive and consistent pattern of returns being paid out?

Every investor wants to invest their money in the best safe investment, that will generate a healthy income for them, in the future. With that being said, investors should seek low risk investments that have demonstrated a strong demand in the market, and that analysts have predicted will remain popular; over a long period of time.


  1. It’s no wonder investors are confused with literally thousands of investment options to choose from. Start by looking at the investments that have done well in bad times. This will be a good indicator of how good they will do when times get better.

  2. Investors who invest in an asset or commodity in constant demand today can be assured to a great degree of getting back consistent returns in the future.

  3. The past performance record of an investment goes a long way in determining whether an investor considers making a financial commitment or not. If it’s a positive history then the odds increase it will also be in the future, in turn lowering the risk factor. If it is negative, then the odds also increase it will be negative in the future, thus raising the risk factor.

  4. Assets and commodities that are in constant demand in the global market are proving to be consistent and profitable investments. The risk is low and the returns are constantly outperforming traditional options by a wide margin.

  5. Investing is all about risk versus reward. The lower the risk the better. The higher the reward the better. The problem is finding investments that are low-risk high-reward. They are out there, particularly in hard-asset options that are tied to the growing global economy.