Thursday 7 February 2013

Investment Seekers Will Take Profits Over Tradition Anytime


There once was a time, when an investor built their portfolio, that the main components contained within were a variety of stocks and bonds; sprinkled in with some CD’s. That was when it was considered to be the “traditional” approach to creating a well-balanced portfolio. That wasn't very long ago. It seems that in the investment world, everything has changed since the meltdown began in earnest, in 2008. The Great Recession, considered to be the result of “improper future speculation” for “the purpose of present greed” by the leading financial firms at the time, brought so much attention worldwide, that investors began to view the banks and the stock markets; as untrustworthy and unreliable. Millions of investors lost trillions of dollars, global countries and region’s economic futures were put at stake. This caused serious financial hardships for hundreds of millions of people, all around the world. As a result, the “traditional" investment strategies of the past, have become just that, a thing of the past.

Since investors became concerned about investing in the stock markets and banks, they had no choice but to look for alternatives in the market, if they hoped to grow their money. They found many that were proving to be, not only profitable but more importantly, more transparent. To put that in perspective, if a stock investor had less than $100,000 invested, the chances of them hearing from their broker were slim to none. Investors found that it is re-assuring for them to have tangible and transparent investments that they could actually touch and hold, plus receive better communication as to what was happening, with their hard-earned money and investment. Not to mention the fact that many of the most popular alternative investments, such as shipping container investments, have been delivering constant, above-average returns in the last five years; while the global stock markets have remained flat. Just recently, the global markets reached the levels that they were at, when the financial crisis began back in 2008. In other words they are just back where they started from 5 years ago! It took the markets this long, to recover from their ill-advised actions.

In the meantime, millions of investors have taken advantage of the alternative options in the market and have been more than satisfied with the positive results. Nowadays, global money managers strongly recommend that a formula for a successful investment portfolio, contains a large percentage of alternative options; in order to protect against any losses from any traditional investment strategies. This is because this approach to investing, is not directly correlated with the stock markets, not negatively affected by inflation and they shown they can provide an alternative for confused investors; in a market filled with uncertainties. It’s no wonder that investors have begun to embrace the values of alternative investments. When it comes to investing, all the investor is concerned about is profit in the end. These days, alternative investments are simply proving to be more profitable than the traditional strategies, of the past. And nowadays, this investor will take profits over tradition, every time.

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