Investors Want Control and Commitment From Investing Options

It goes without saying that researching and determining the best course of action for investing money, is likely the most challenging obstacle any private investor will undertake. Traditionally, investment-seekers would employ the services of an experienced and knowledgeable investment broker or firm, to offer viable solutions and professional advice about investing. Nowadays, the savvy investment community has become more independent in their decision-making process and less reliant upon the opinions of so-called experts, when deciding where to invest their money.

Although both difficult and time consuming, investors are conducting their own research into the market's offerings. In doing so, they have become more cynical of investment opportunities and as such, many of the traditional strategies for investing have been removed from portfolios. Stocks and bonds are being replaced with tangible commodities and hard assets, that investors can more closely monitor and in some instances, directly control. This is the type of great investment experience that every independent investor seeks. The days of helplessness and accepting little control over investment strategies are nearing an end for a growing number of investors.

The fact that the American banking scandal and subsequent Global Financial Crisis (GFC) was able to have such a profound effect on the world, more and more investors are refusing to relinquish control of their financial resources and assets to the control of investment brokers or brokerage firms. The fact of the matter is, the investment community has become apprehensive about these traditional strategies for investing and instead are seeking options that can make more of a commitment to investors, now and in the future.

Examples of Hard Asset Investments and Reasons to Include Them

A hard asset is anything that a person owns that is tangible. It can be a physical asset such as a building or inventory, gold, land or even a shipping container. Hard assets can be considered very valuable because they can often be used to purchase, trade for or produce other services or goods.

There are many different types of tangible investments, with varying values, that investors can consider adding; to their portfolio of traditional investments. For example, buildings, certain types of machinery and shipping containers, are included in the category of hard assets. The value of any given hard asset, depends mainly on certain physical properties. Sometimes the value can depend greatly on whether the hard asset has been reproduced, or if it can be reproduced. This is especially true for gemstone investors, investing in precious gemstones.

Some common examples of hard investments include agriculture, precious metals, base metals, water, forest products and both renewable and non-renewable energy. Depending on the economy, some of the choices of hard investments can be good, and some can be bad. Currently, there is a rising global demand for hard assets such as precious gemstones and metals, energy, food, shipping containers and even luxury goods. Because there is such a consistently high international need for these items, considering the introduction of alternative assets like shipping container investments, can be the best and safest decision; a confused investors can make.

Investors Confused by Exchange Rate Investment Opportunities

The United States, Japan and a growing number of other European nations, are all drowning in debt. For an ordinary investor, managing their investments and investing options in these uncertain times is one thing, however managing emotions during the biggest financial panic in a generation; is quite another.

Investors must first realize, that when it comes to exchange rate investment strategies, one size does not fit all. It never has and it never will. From about 1870 to 1914, the gold standard or gold exchange standard of fixed exchange rates prevailed. Before 1870, many countries followed bimetallism. Then came the period between the two world wars, when the Bretton Woods system emerged as the new fixed exchange rate regime. In the aftermath of World War II, this system was formed with the intent to rebuild war-ravaged nations, through a series of currency stabilization programs; and infrastructure loans.

In the present, the state of foreign exchange markets does not allow for the rigid system of fixed exchange rates. At the same time, freely floating exchange rates expose a country to volatility in exchange rates. There have been hybrid exchange rate systems which have evolved, to combine the characteristic features of fixed and flexible exchange rate systems, however individual currencies are still subject to outside influence; and uncertainty. As such, many investors are seeking investment opportunities that have demonstrated a global importance, and are expected to play a prominent role in the development of recovering economies.

Four Ways to Make a Profitable Investment in Oil

As crude oil prices reach record levels, consumers are constantly hearing their co-workers, friends and family, complain about the price of oil and gas. Although the rising prices are a source of concern, and sometimes anger, here is how dismayed consumers and investors, can get a profitable share; of the oil boom.

When making an investment in oil, investors have many options. It is important to note that these methods come with varying degrees of risk, and range from direct investment in oil as a commodity, to indirect exposure in oil; through the ownership of energy-related equities. Nevertheless, here are 4 ways to make an oil investment:

1. Buy an oil well. Obviously, if you own an oil well, your revenues increase as oil prices rise. There are, of course, a lot of operating expenses to be considered before purchasing such an asset, and there is a lot of uncertainty, as well. Beyond producing wells, you can purchase exploratory wells or invest in start-up drilling ventures, but such investments are even riskier than they sound. You’ll need a fair amount of capital and "nerves of steel," to get into this segment of the oil market.
2. Purchase oil futures or oil futures options. Crude oil is a commodity and futures are traded on the commodities market. Futures are highly volatile and involve a high degree of risk. Additionally, investing in futures may require that the investor to do substantial investment research, as well as invest a large amount of capital; to participate.
3. Purchase commodity-based oil exchange-traded funds (ETFs). ETFs are traded on the stock exchange, and can be purchased and sold in a manner similar to stocks. As with futures, these are risky and depend solely on the price swings of the commodity. Because they are traded like stocks, ETF's offer a great deal of freedom to buy and sell. Energy-specific ETFs and mutual funds, invest solely in the stocks of oil and oil services companies, and come with lower risk.
4. Buy stock in companies engaged in the transport of oil. These include companies that own pipelines or oil tankerage firms. Firms such as these also pay large dividends, and their share price typically correlates roughly, with the current price of crude oil.

I try and maintain at least 5% to 10% of my investment portfolio in energy, at all times. I would recommend closer to the 10% mark, if you depend on investment income. This is not just because oil is at record high levels, thanks to Arab and Middle Eastern political turmoil. The fact is, that even when oil prices fall, you rarely get hurt investing in oil-company shares. This is because when gas prices rise, economies tend to slow. This may cause the rest of your stocks and funds in your portfolio to fall. However, when oil and gas prices rise, oil and gas stocks tend to rise with them. As such, exposure to oil and gas stocks can help insulate your investment portfolio, and protect you against any economic slowdowns and down-turns; caused by "oil shocks."