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.
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For many investors, the economic situation in Europe remains unpredictable, and poses an unforeseen threat to global stocks; as well as many of the World's important markets. With that being said, it is understandable that some investors might see bonds from countries in the EU, as risky and undesirable; and would likely seek alternatives.
ReplyDeleteInvestors are wise to be careful about investing in Europe and the United States since many of their business and banking leaders have proven to be untrustworthy and some may say irresponsible. However, the only way they are going to climb out of the fiscal hole they dug themselves is through investment for the future and many experts agree it has to be now.
ReplyDeleteIt’s a good thing that there are alternatives in the investment market that investors can turn to since many of the traditional options no longer deliver positive returns. It doesn’t make sense to keep investing into something when it continues to lose your money. It doesn’t make dollars either.
ReplyDeletePeople are always interested in finding the best options in the market where they can invest their money so it makes money. There was a time not long ago when stocks and bonds were the only viable opportunities. Times have changed. There are now alternatives.
DeleteThe situation in Europe regarding their financial crisis will be straightened out over time. Unfortunately for many that time can’t come soon enough.
ReplyDeleteThe European community and the United States will eventually right their listing financial ships. They all have too much to lose along with much to gain.
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