Tuesday, 16 October 2012
Investors Consider Alternative Investments Amidst Bond Fears
With so many countries having conflicting interests and hidden agendas, investors are no longer seeking refuge in bond auctions. Even with increasing yields in both the Spanish and Italian bonds, private investors are still very cautious of downgraded sovereign debts. Why? Many investors believe that these type of bonds, are at dangerous and unsustainable levels, and thus are seen as risky and undesirable investment options.
As most private investors see it, if the European Union does not handle the situation appropriately, the banks and countries that are on the brink of insolvency; are likely to fuel a bank run. Thus, the economic situation remains extremely precarious in Europe, and poses an unforeseen threat to global stocks; as well as World markets. This result has prompted private investors to seek low risk investments and identify new asset classes, in which to invest their hard-earned capital.
Considering for a moment that there appears to be no reliable investment information available for investors to properly assess the risk-return trade-offs, for financial assets such as stocks and bonds, the smart thing to do (if you choose to continue to make investments) is to look for alternative investments that have demonstrated that they can generate a profitable return; now and in the future.