Pension Funds Still Showing Strong Interest in Alternatives

One way to beat rising inflation may be to follow the pension fund managers, and their recent move to invest in alternatives.  In early 2013, pension funds seemed to be leery of alternatives, but as we drew closer to 2014, they began to express a keener  interest (Reuters August 2013).  Nowadays, pension funds are still showing a strong desire to review their alternatives and options, and in doing so that group of investors have begun to increase their hedge fund holdings to record numbers.

Pension funds at one time were considered the most conservative investment group, using only traditional, conservative methods to beat rising inflation, but those times are changing quickly. Nowadays, money managers in pension funds, armed with a good reason to invest in higher yield vehicles, are eager to align with any opportunity that will allow them to recapture lost cash reserves and bolster their individual account funds. Record numbers of fund managers are now working the markets with alternatives, looking for big returns.

With both positive and negative viewpoints expressed by hedge fund managers (and so-called “Gurus” of the investment world), alternatives appear to be more and more suitable as global markets recover and grow. Consider the American City of Detroit’s debacle, where more emphasis has been placed on pension funds by pensioners and the public at large to shore up assets and reserves. At the moment, pension managers in the United States can only account for 73 percent of actuarial obligations.  The need for immediate improvement is increasing daily, as pension reform cries are heard.

At the end of January 2014, Moody's issued a report on several of investors' alternatives. The report, entitled: Asset Managers Stand to Benefit from Investor Shift to Alternative Investments, says that increased allocations to alternatives are likelyto continue, as investors - notably pension funds, search for higher returns. This structural shift by pension funds toward greater alternative investment holdings is a positive development for skilled alternative asset managers, who see it as an opportunity to mitigate the common investing risks that are coomonly associated with alternative investments.

Pension funds are increasingly moving towards alternative investments, which offer higher portfolio returns and better protection against inflation and price volatility,” says Soo Shin-Kobberstad, a senior analyst at Moody's and the author of the report. "In addition, asset classes such as real estate and infrastructure offer long-term asset duration and cash flows that match the profile of pension funds' long-term liabilities.

As in any business, Cash is King, and for pension funds especially, the C.I.F. rule (Cash in Fist) applies, as the Boomers retire in mass numbers. Today, more than 20 million Americans look for their retirement check to be what was originally guaranteed, yet city governments like the States of California and Illinois, and others focus their might on pension reform that limits benefits both now and for future retirees. California went so far as hire a Canadian firm to monitor and move funds towards higher returns. Making cuts to cost of living adjustments, benefit reductions and other strategies are under review, as well as considering the move to alternatives. Closing the financial gap for pensions is a critical need. Higher yields have the ability to shore up shortfalls, despite the elevated risk.

When it comes to choosing from the many investing alternatives for investors, there is never too much experience, research or review. Pension funds have taken a beating over the years, which they now are positioning themselves to fill the financial gap that has begun to swell.

If you seek higher yields, alternative investments may be the key to increased wealth.

Why Did I Invest in Shipping Containers And Should You?

Over the last couple of years I have been overwhelmed by the number of investment seekers who have asked me why I invested in shipping containers. For most, it is an investing opportunity that very few knew existed. For others, they were cynical of the international shipping industry's recovery and thus very apprehensive. I must admit, at the beginning I belonged to both of these groups of investors.

I had heard about the opportunity to invest in shipping containers from others in the investment community, but until the GFC in 2008-2009 I had never been given the option of considering it, or learning more about it. For years it seemed to be a secret investment that only a select few investors were given access to. So, when the opportunity presented itself in the form of an email message from Pacific Tycoon, I immediately began doing my research and challenged the investment from every angle.

Like most other investors, I found it difficult to believe that the global shipping industry wasn't suffering like many other industries and that lease rates are not affected by overcapacity in the sector. To my surprise I learned that governments everywhere rely heavily on the maritime shipping industry to fuel their economic recovery, and thus making an investment in cargo containers is like making an investment in economic growth. The truth be told, as nations look to raise their GDP, shipping containers play a vital role in helping them achieve their economic goals. Without a continuous supply of them, it is impossible for countries to maintain steady growth.

From my perspective, any opportunity for investment that is in such high demand around the world and makes such an important contribution to economic growth, is an ideal replacement for struggling equities and uncertain bonds; in any investor's portfolio. This is why I recommend investors review shipping container investments and make a hard comparison to the assets that currently occupy their investment portfolio.

Many Wealth And Fund Managers Are Recommending Hard Assets

With the financial crisis of 2008 still looming over the heads of investors, many are skeptical to invest their money into traditional investment vehicles, such as the stock or bond market. With (on average) a 40 percent loss resulting from the stock market meltdown a half-a-decade ago, investors are seeking alternative assets that offer lower risk and steady returns. To accommodate the investment community’s cautiousness, money managers and advisers are diversifying assets away from the bubble-prone stock market and into hard assets. In fact, several market-research firms believe that the move away from equities and into alternative assets will continue to be a growing trend over the next few years, particularly as investors look to guard against risk and beat rising inflation.

Many analysts believe that hard assets, such as gold, oil, precious metals and gemstones, are attracting interest from retail and institutional investors; because both groups are increasingly looking for portfolio diversification, enhanced returns and lower risk. In the current investment climate, it would seem that in order to reduce the volatility of investing, wealth funds and advisers have been increasingly re-allocating capital into hard assets. As a matter of fact, asset managers who manage portfolios for wealthy investors have suggested that the amount of money in alternative products, such as investing in shipping containers, will see a dramatic rise in popularity and demand over the next five years.

The investment anxiety shown by investors has seen a marked increased since the onset of the financial crisis in 2008 and thus, has resulted in a growing number of advisers and professionals recommending a strategy that includes an alternative asset class. Because of the widespread adoption at the institutional level, it is safe to assume that alternative assets will continue to rise in demand over the next decade, as profitable alternative investments usher in a new age of investing that promises a better investment experience for investors.

40% of Pensions Considering Alternative Assets to Reduce Risk

A global financial marketplace that has been in recovery mode for the last five years is regarded by most to be a challenging, volatile climate for investment. On the other hand, there are those who believe that it is an opportunistic place for investment-seekers to build a portfolio. For instance, the traditional investing strategy, which consists of buying and selling stocks, bonds, real estate etc.; has not been as profitable in today's uncertain economic environment. Because of this ongoing poor performance, 40 per cent of pension funds are considering moving a larger portion of their funds to alternative assets (Aon Hewitt survey), to capitalize on new opportunities that will reduce their portfolio's exposure to common investment risks and influences; like inflation and interest rates.

The Aon Hewitt research clearly illustrates that there is an increasing willingness of trustees and advisers to consider a wider range of asset classes, than has historically been the case before. The data further suggests that trustees are now much more prepared to accept that investing in alternatives has both a key role to play in reducing portfolio risk and may also offer the chance of producing very attractive returns. It also seems that pension funds are more prepared to hire third party expert consultants to expand their range of investment options.

The fact of the matter is that alternative assets have repeatedly demonstrated they are an excellent option to help investors beat rising inflation and reduce risk in their investment portfolio. And although private investors may have started the movement toward alternative investments post-2008, an increasing number of pension funds, financial institutions and investment banks have been swift to re-allocate their capital to the growing list of alternatives, in an effort to provide clients with long-term capital growth and lower their over-all exposure to risk.

This is Why Hard Assets Make Sense in Today's Tough Markets

Today's uncertain, volatile and tough markets can pose a number of challenges for new and experienced members of the investment community. In order to guard against rising inflation and to account for economic uncertainty, the average investor must learn about the advantages of introducing alternative investing strategies, such as the reallocation of capital into hard assets. At the moment, alternative investments like hard assets are being widely recognized as fantastic options for investors to utilize, particularly in a volatile investing environment. This is because, and aside from the fact that they will steadily increase in value over time and offer diversification in an investment portfolio, these investments are very often able to beat rising inflation.

Instead of remaining steadfast on traditional assets such as stocks and bonds, many investors have been shifting their focus to alternative offerings, where profitable commodities such as precious metals and gemstones continue to perform well in tumultuous markets. Apart from the well-known commodities, the demand for hard asset investments like container investing, has continued to experience a dramatic rise in popularity; since the introduction of the Global Financial Crisis. With that being said, the world's extremely wealthy are shifting their investment focus away from holding cash, and instead are placing their money (and faith) into hard assets like shipping containers; that are tangible and far less-likely to be manipulated or influenced by political turmoil and/or financial uncertainty. Given the current economic circumstances, investors may want to consider following their lead.

It would seem that over the last few years, a growing number of wealth fund managers across the globe have been recommending hard assets to their investment clients. This further illustrates the trend in modern investing, that is seeing a strong shift toward introducing a modest amount of well-established alternative assets. The fact of the matter is that investors are realizing hard assets can minimize the risks associated with investing, hedge against inflation and provide ample diversification in an investment portfolio. These are the fundamental characteristics associated with a modern investment portfolio, that has appropriately accommodated for unpredictable global market volatility; now and in the future.

Whilst Bureaucrats Bicker Economies And Markets Suffer

There once was a simpler time, when investing was not as challenging and bankers were genuinely concerned with our personal fortune and immediate well-being. Nowadays, the investment community is facing repeated threat of negative political influence, in addition to the established risks associated with investing in stocks, bonds currencies and real estate. It would seem that in today's struggling markets, investors cannot gain the support of their financial institutions or their government officials.

Take for example the ridiculous and, in my mind, unnecessary political stand-off in the United States. The government shut-down that has resulted there, is costing the American businesses and economy upwards of $300 million per day. That figure only speaks to the monetary losses suffered by the United States, it says nothing about the adverse effects it is having on international investors' confidence. Let me just say that as stocks in the U.S. keep falling, so does investor confidence. And, if politicians do not swiftly address the investment community's rising concerns, the consequences for the American economy and international investor outlook will be more than just “unfavorable.”

Whilst the bureaucrats bicker, economies and markets suffer. It would seem that because of this, it has become increasingly important for investors to include political influences on their checklist of investment risks to be constantly aware of, when choosing their path to long-term investing success. Aside from unforgiving bankers and greedy stock and bond traders, investors can add political unrest to their list of perils to avoid when seeking safe and steady returns.

The fact of the matter is that the radical positions taken by U.S. lawmakers has seriously weakened the super-power's economy, but done very little to strengthen their own political agenda. While officials continue to hold the economy and investments hostage, American investment options will grow less and less appealing, prompting investors to instead seek investment alternatives in appealing emerging markets.

Emerging Markets Must Continue Investing in Economic Growth

As the world economy grows and evolves into the 21st century, there is bound to be some ups and downs along the way in terms of overall GDP. While industry experts have forecast that the global economy will double by the year 2020, many factors will play a role on how it will ultimately unfold year after year until it reaches it’s expected potential value. In the last five to ten years, the emerging markets have been the main driving force behind it’s current growth rate and will still be in the next few years, but they must continue to make the right investments in their individual economies to keep the global economy moving forward.

China, the world’s largest exporter and soon to be biggest importer, has enjoyed double-digit growth over the last 10 years, but has recently announced that it is going to put measures in place to manage a consistent annual growth rate of around 7%; for the next few years. While this news has had a particular negative effect on some markets around the world, China, the world’s biggest emerging market, maintains that it wants to be able to stabilize it’s own economy and by doing so, the entire global economy will exponentially follow suit and become somewhat more stable itself. In the long term, what is best for China will subsequently be best for the rest of the world’s economies.

India, the second most populous nation and an appealing emerging market with incredible potential, has been slow in making the right investments in it’s transport and port infrastructures, and unless they reach their domestic economic goals, the global economic forecasts will not fully come to fruition as expected.  However, the government does have an ambitious target for building it’s required infrastructures and is just now starting to generate more interest from the private sector to help build India’s foundation for it’s economic future. Other major emerging markets such as Brazil, Russia and the continent of Africa to name a few, must also continue to make giant investments to grow their GDP in order for the global economy to continue to grow into it’s vast potential, and they seem to be on the right track but still have much work and further investments are needed; if they intend to keep up the pace.

When it comes to these types of large investments, these emerging markets must think long-term and continue to grow their economies even if the overall global economy goes through some tumultuous times. Without investment to attain future prospects, there simply won’t be any rewards to be gained down the road. As the old saying goes ... you can’t win the game, if you don’t play. When it comes to enjoying long-term investment success, investors can’t get a return in the future if they don’t invest in the first place.

Investors Must Protect Investments From Currency Risks

As investors, it is important to minimize currency risks on their investments, as they can lead to a substantial loss of investment principle. It is first important to understand what currency risk is, where it originates from and what consequences can derive from them in order to protect your investments from them. Currency risk is essentially a form of risk that originates from changes in the relative valuation of currencies. Therefore, these changes can result in unpredictable gains and losses when the profits or dividends from an investment are converted from the foreign currency into U.S. dollars. In order to protect their investments, investors can reduce currency risk by using hedges and other techniques designed to offset any currency-related gains or losses.

Managing currency risk is a complicated but important part of protecting your investment principle. Investors have several options when it comes to managing currency risk, including instruments such as currency futures, forwards and options. However these instruments are often expensive and complicated to use for private investors. In addition, a simple, flexible and liquid alternative to hedging against currency investment risks are currency-focused exchange-traded funds (ETF) and income producing assets. Although there are several ways to invest in the currency market and manage your exposure to risk, it is widely considered a risky commitment and (understandably) some options are riskier than others.

It is important to remember that currency risk originates from changes in the relative valuation of currencies and as such investors should learn about the markets they are investing in, in order to protect their principle and enjoy long-term investment success. Although they can benefit your investment at the time of purchase, currency trading is an extremely risky form of investment, and is only suitable for individuals and institutions capable of handling the potential losses; that could unexpectedly result.

Investing in Alternatives Generates Interest Among Investors

Ever wonder why the global stock markets have had such a hard time in the last 15 years? There are invariably many reasons, greed being one of them. Bad speculation practices are another reason, as is banking and investment regulations that are out-dated and easily exploited by the industry's major players. One other big reason is that these traditional investments options, such as stocks, bonds and cash deposits, have more competition in the market nowadays; namely alternative investments.

There is just so much money in the global investment pool to go around and in the past century, the over-whelming majority has gone into traditional offerings. Times have changed as investing in alternatives has become increasingly popular, particularly since the turn of the century. Their rise in appeal happens to stem from a timing standpoint, as the global markets suffered huge losses due the Y2K fiasco that contributed to the NASDAQ losing much of it’s value virtually overnight. With their confidence shattered investors took whatever money was left to start-over and went in search of alternatives. Coming as a surprise to many investors, turmoil happened again when the U.S. banking scandal erupted in 2008, which subsequently led to the European Crisis that still lingers today.

To illustrate the massive migration from traditional options to alternative investments, consider this: In 1997 global pension fund assets, that were held by the 100 largest asset managers dealing with pension funds, represented 5% of the total investments. In 2012, that number rose to 19%, while showing an increase of 8% from the year before, and rising to $1.3 trillion. This is a significant shift in investors' assets and it has only added to the pressures on global stock markets to generate more interest from investors. If the stock markets did not give their investors such a roller-coaster ride, perhaps many of them would not have switched to the much more appealing alternatives.

Let us be truthful. In the end, investors only care about one thing and that is profits. If investments are not delivering profits, then it can be expected that investors will shift their investment money into something that can deliver long-term investment success. Nowadays, it happens to be the unexpected alternatives that are earning investor confidence and finding their way into a growing number of diversified portfolios.

Wise Investors Diversify Portfolios With Alternative Assets

Because many investors still carry damaged portfolios, as a  result of the Global Financial Crisis, they are determined to prepare for continued market volatility and protect their portfolios. This has led to an increasing interest in the utility of alternative investments to assist in the diversification of portfolios and the steady increase of investment returns, even in a market that contains low interest rates. In addition, financial advisers have had an opportunity to help clients understand a large number of options for adding alternative assets to their portfolio. Before investors and clients rush to a mutual fund, exchange-traded fund, managed futures platform or hedge fund, wise investment advisers should carefully assist their clients to evaluate other options such as variable annuities with alternative asset classes and strategies. This is essentially what has been a growing trend within funds, and investment advisers are helping clients reach a more versatile portfolio.

It has been established that precious metals such as gold and silver have been hot alternative investments in recent years, until of course as of very recently. Nevertheless, the “M.E.T.A.L.S” approach used by investment advisers to evaluate an investment in precious metals, can be applied to most any alternative investment offering; especially those in hard assets.

• The "M" is for minimum, and this is because many alternative investment VAs give investors access to alternative investments for a manageable minimum investment.
• The "E" is for expenses, because expenses for alternative investment products are relatively low when compared with managed futures platforms and hedge funds, which typically layer a performance fee on gains on top of an asset management fee.
• The "T" is for taxes, because trades within alternative investment VAs do not create a taxable event. Taxes are assessed only upon distribution.
• Next is "A" which stands for accreditation, meaning that most clients have to have a certain income or amount of capital available for investment, in hopes that the client will be able to stay on their feet, if something were to go wrong.
• The "L" stands for liquidity, which is very important for hedge fund managers.
• Lastly, the "S" stands for spousal protection, meaning that investing in alternative offerings can help surviving spouses maintain financial stability after the owner’s death.

As the growing trend of investing in alternative assets increases, the investment community will continue to see financial advisers urging their clients to review investment options and alternatives, that will allow them to diversify their portfolios and avoid exposing themselves to the unnecessary risks; presented by many traditional investments. As well, this approach encourages investors to branch out and take advantage of some of the other very profitable alternative investment opportunities, that have become available in the market.

Investors Say Shipping Industry is Key to UK Economic Future

Certain industries are very important to life of many countries economies and in the United Kingdom, the maritime sector has always been a driving force. If the UK expects to grow their economy in the future it is important that their port and transport systems are up to speed so-to-speak, in order to facilitate any prospective growth. Although the nation has suffered a great deal in the past five years during the financial crisis that began in 2008, the shipping industry has been busy trying to prepare for the new global economy of the future that is expected to boom before 2020.

Billions of pounds have been, and are being invested to get their port systems and rail networks upgraded and modernized to put the country into a strong competitive position when it’s economy starts to grow at more respectable levels. Right now it is projected to be somewhat flat for the next couple of years but there are brighter days ahead and the maritime industry will be ready for it when it unfolds in the next 3-5 years. It has to be ready or the UK will simply not be able to grow their economy like they should as these infrastructure investments lay the foundation on which they can build a more prosperous future.

In the UK, around 95 percent of imports are delivered by shipping vessels and 75 percent of exports go through the nation’s port systems. As well, about half of the country’s food is imported with 95 percent of it delivered by sea. The shipping industry also supports well over 700,000 jobs in the UK and that number is expected to grow substantially as the nation heads towards a more sustainable future. Without laying down a solid foundation for imports and exports to be delivered efficiently and effectively, the whole industry would be in jeopardy and along with it, their domestic economy.

The UK is not alone in having to seriously look at making the right transport infrastructure investments during these difficult times but the United States is also having to make some tough choices when it comes to spreading infrastructure money around. At least in the UK, it seems that they are on the right track as their new London Gateway is about to open at the end of the year signifying the start to a new prosperous future for the once-mighty of world countries. Major projects in Liverpool and other regions are also contributing to building up the nation’s economy in the short term and in preparation for the future. Things are starting to look better these days for the UK thanks to some hope that they will be in a position to capitalise on the expected opportunities that the future global economy will bring, due to their smart investments into their port and transport systems. They will be the foundation for the facilitation of their future. Without them, their outlook will be dim.

Is The UK Slowly Being Sold to Wealthy Foreign Investors?

When a nation's economy is struggling and there is little money left in the government coffers or in the business community to invest into it, what is a country to do? It does what many others have done in the past and still do today. They look to other countries around the world who has some money and may be interested if there were investments worth considering. For many nations today seeking some substantial foreign investments, they don’t have to look much farther than China or the Arab Gulf nations. It seems they have lots of money to invest in other countries and both regions have been spending money lately like it is going out of style.

The interesting fact is that the Arab Gulf Nations and China have been making really good investments of value such as many port and transport infrastructures that they can manage and make all kinds of huge returns. Also in the UK, some of the most prestigious and iconic buildings and institutions are owned by Qatar, such as the grocery chain Sainsbury’s, BAA (British Airports Authority), the London Stock Exchange, Barclays, and the Shard of Glass development, Europe’s tallest building. It looks as if they went into the UK and said "we have tons of money to spend and we want to only buy the finest investments that you have available." It’s nice to do if you have the money and China, the UAE and Qatar are all flowing with an abundance of it and are making massive investments all around the world and getting them at bargain basement prices.

Who can blame these nations for making the best investment they can with what they have available to invest? Even the average investor wants to invest in the best investments and business opportunities they can, with what little investment money they have. The problem is that they don’t always have the luxury of a steady flow of oil revenues to fall back on if if doesn't go according to expectations. That is why for any investor, it is absolutely essential to conduct good proper research before making any type of commitment. It increases the odds of making the right choice at the start so the returns will come in as expected in the future.

It is probably a good thing for the United Kingdom that they have such a good relationship with some Arab Gulf nations. They will never be short of cash to help in the future if the UK runs into problems in the future, which is a good probability considering that they haven’t done much to restructure their banking systems to avoid another similar catastrophe like the one that began in 2008. With that being said, it all comes with a price. In the case of the UK, the price they have had to pay is having to sell off some of their antiquities and prized possessions, just to help pay some creditors with outstanding debts from the past. Let’s hope the trend doesn't continue and the UK can still offer opportunities that give investors confidence and reasons to consider investing.

Port of Tilbury Investing Keeps it Competitive in UK Shipping

The United Kingdom, just like most of all the other members of the European Union, has been mired in a serious economic slump since 2008. Although, the UK’s projected GDP growth is expected to remain around 1% for the next couple of years, there are signs of positive economic activity throughout the nation, mostly due to the upgrading and modernizing of their port systems. All presumably in preparation for an expected upswing in the EU economy in the near future which, when it happens, will put the UK in a better competitive position when the global economy picks up more steam as emerging markets continue to grow and create more consumer demand and prosperity.

These days, in London, the new £1.5 billion construction project, the London Gateway, seems to be getting most of the attention as it moves closer to it’s expected completion date at the end of this year. However, there are other regional ports that are also doing their best to modernize their port systems to be in a strong position to capitalise in the future as well. The Port of Tilbury, currently the city’s principal port, is part of the Port of London and has recently just received 14 brand new Kalmar straddle carriers to help make the port more efficient and effective. These new advancements in port technology represent part of the port’s £20 million investment programme, instituted to put the Port of Tilbury in a good competitive position moving forward into the future.

"We have put in place a significant investment plan for the London Container Terminal, which will see the continued upgrading of the site and its equipment as we work to integrate container handling across both the deep sea and short sea operations at Tilbury. The acquisition of these straddle carriers has further secured Tilbury as a key shipping and distribution location with unrivaled access to London and the South East of England,"- Chief Operating Officer of Forth Ports.

The Port of London used to be the largest port in the world and is currently the UK’s second largest behind Grimsby & Immingham in terms of tonnage. That is all expected to change once the London Gateway is completed but it does not mean that there will not be enough business in the future for all of the United Kingdoms’ ports to benefit from. That is, of course, if they are ready for it when it comes their way. These massive port infrastructure investments and upgrades are absolutely necessary, if London and the other strategic regions of the nation want to be in a good position to thrive and drive their economies forward, into the 21st century.

Alternatives Offer A Great Hedge Against Market Volatility

There are two words that send shivers down the spine of every stock market investor. Market volatility. This is because the global stock markets are directly tied to the inflation rate. Whenever the inflation rate rises, the overall stock market values go down. In the last five years, the markets have been extremely volatile in the wake of the western financial troubles that had a devastating effect to the global markets and crippling many world economies. Millions of investors lost billions of dollars leading to (what some people are calling) The Great Recession of the 21st century. Unfortunately, there are still some lingering negative effects, as the latest developments in the Europe clearly illustrate, particularly highlighted by the financial problems experienced in Greece and Cyprus.

There once was a time not long ago, when the only choice investment-seekers had was to take a gamble on the stock market and fill their portfolio with shares. Thankfully that strategy has become less popular with the emergence of alternative investment options, that are proving they can consistently outperform the traditional offerings. Nowadays, investors have lost their confidence (not to mention a lot of money as well) in the traditional methods of investing and are beginning to take advantage of the many profitable alternatives, dominating the investment landscape.

Most alternative investments are not correlated with stocks and bonds and as a result are not negatively affected when the inflation rates go up. In fact, the opposite happens. Their value actually increases making them a great addition to any investor’s portfolio. Many established investment advisers and firms are now strongly recommending that a well-balanced portfolio contain a large measure of alternatives to protect it against under-performing stocks and volatile market conditions which lead to high inflation rates.

The investment landscape is definitely undergoing a massive shift as global alternative investments are now valued in the trillions of dollars annually and the trend is expected to continue for years to come as the global economy grows. For the longest time, the traditional method of investing into stocks and bonds ruled the financial world. While they did not always deliver a great investing experience, for investors looking to grow their money, they were the only option at the time. Nowadays, times are changing as investors now have a much wider range of many profitable alternative options to choose from.

Gold Does Not Predict the Performance of All Hard Assets

In the investment world all that glitters is apparently not gold. On April 15th, 2013 gold dropped in value more than 9 per cent, resulting in the biggest one-day fall, in 33 years. Moreover, some analysts believe it could drop an additional $100 in price per ounce, in the next 60 days. Needless to say, this has many gold investors worried and some are even panicking and rushing to sell-off their gold assets. The bottom line is that all investments carry a certain measure of risk and now it appears that gold is no exception.

Gold is considered to be a good hard asset investment for the most part, historically gaining in value decade after decade and most assuredly will continue that trend by the end of this decade, but right now, gold investors are advised to hold onto their investments; until the price goes up again over time. How long will it be is anyone’s guess at this point but it is inevitable. Time will tell. Until then, investors have to be patient and not panic and sell their gold assets. This could lead to a further drop in value and no gold investor wants that.

Gold is just one of the hard asset alternative investment opportunities available on the market today. Hard assets have always been considered to be less risky than traditional options such as stocks and bonds. They are not directly correlated with the stocks and bond markets and thus are not affected by inflation, in the same manner that traditional investments are. Hard assets are essentially the materials that are needed in the manufacturing of all the world’s consumer goods and transport requirements and have always been in strong demand as the global economy continues to grow, decade after decade. This is one main reason why these investments are so appealing to investors. In most instances, investors know that their investment is in an asset that is in constant demand worldwide and is expected to continue that way, for many years into the future.

Investing is all about  future speculation and the direction the global economy is growing. Yes, the price of gold is down at the moment, but many investors believe it will bounce-back again, in an even bigger way. Some analysts have predicted that the global economy will double in size by the year 2020 and in turn, the demand hard assets needed to facilitate the massive growth is also expected to double in size, as well. As you can imagine, these positive forecasts mean good news for anyone who has made an investment in hard assets.

UK Shipping Industry is in Need of Foreign Investment Money

There have been reports released recently that indicate that the United Kingdom is going to require at least £400 billion invested into the nation’s transport infrastructures over the next ten years in order to be able to compete efficiently and effectively in the future global economy. Although the government announced they would be increasing their annual public investment into the sector by £3 billion in 2015/2016, analysts believe that these are mere drops in the bucket compared to what is needed now and in the future. The government is not solely responsible for these huge infrastructure projects that are needed. The private sector also has to put in their share in order for it to work for the benefit of the country. Analysts believe that herein lies one of the problems.

Building and maintaining the UK’s transport infrastructures are essential to the country’s future economy and it is evident that much more investment is needed before the nation can reach it’s full potential. The UK only has so many limited investors domestically that have the money and the means to fund these massive capital investment projects. As a result, it has had to seek sizable private investment from investors in other countries. The UK is not alone in looking for funding for much-needed infrastructure projects and port improvements. Most countries in the world have found themselves in the same financial situation, as they all attempt to prepare themselves for the (expected) doubling of the global economy, by the year 2020. Every nation wants to be ready to contribute and compete, but like the UK, many lack the investment money. As a result, major foreign investors with the liquid capital and available credit to invest, have many choices as to where to invest and what to invest in.

The UK is attracting some investment from the oil-rich and cash-positive middle east countries such as the UAE and Qatar. Dubai’s DP World, one of the world’s largest port operators, already has a huge stake in the soon-to-be-completed London Gateway. Their £1.5 billion investment has created thousands of jobs, while stimulating the local economy. As well, it was just recently reported that Qatar is considering investing approximately £10 billion in infrastructure as well as energy and other projects in the near future. Although it is early in the discussion phase, industry experts say it looks promising. These examples of market opportunity truly define the global economic free-enterprise market system. The reality is that in the credit-based global economic system, cash is still king. That being the case, rich nations such as the UAE and Qatar are just taking advantage of their surplus cash and using it to make wise investment decisions.

Learn About All Investing Options Before Making A Commitment

Whether looking through fruits and vegetables at the local market or vehicles at a car lot, consumers are constantly confronted by opportunities and surrounded by options. The growing list of investment offerings are no different. There are an increasing number of alternatives for investment seekers to consider, that can offer them varying degrees of investing risks and returns. After determining what strategy (risk versus reward) they are comfortable with, it is time for investors to learn everything they can about their available options for investment, before making the commitment to invest or not.

It can be expected that some investment providers might inflate their profit/revenue figures slightly and embellish upon their projected performance record, to draw the attention of investment seekers. Because of this, it is incredibly important for investors to conduct independent research on their short-list of investing options, to determine the reliability of the information that is being presented. In doing so, it is also recommended that investors seek-out the advice of the investment community, not only for help learning the truth about investments, but also for sharing past investing experiences and valuable industry knowledge. The contributions from fellow investors, coupled with established corporate facts and figures collected, can build a solid foundation for making a well thought-out and educated investment decision.

Taking the time to learn as much as they can about an investment offering, is the wisest investment an investor can make. Speaking at length with company representatives, as well as other investors, is likely to eliminate much of the doubt that investors may have accumulated; prior to embarking upon their in depth analysis and detailed research. Once the information is collected and carefully analyzed, investment-seekers should be able to establish which of the investment offerings on their short-list of options will make a meaningful commitment to investors, and which ones will not.

Alternative Investing Continues to Find a Place in Portfolios

What some investors may find interesting to look at is the trend that has developed in the investment marketplace, with regards to the ratio between traditional and alternative options that are being considered/included in investor's portfolios. The fact of the matter is that there are two fundamental investment directions an investor can choose from. Either the traditional options such as stocks, bonds, cash and real estate or the alternative options that are tangible and include antiques, precious metals and gemstones, rare coins, fine art, stamps and even shipping containers. Other alternative investing options include commodities, hedge funds, venture capital and timber, as well.

In the 1990’s, the majority of global financial investment portfolios contained less than 5 percent of alternative options. In the first decade of this 21st century, that number rose to approximately 10 percent. Currently, most global financial firms believe it is best to have between 20 and 30 percent alternatives, in order to enjoy great investment rewards and maintain a well-balanced portfolio. The reason for this is that profitable alternative options are seen in the industry as a safeguard against poorly performing stocks, that may drag down the overall value of the investment. In light of this fact, there are a growing number of analysts who believe that this trend will continue and could end up with the average portfolio containing a 50-50 split, between alternatives and traditional investment options.

Nowadays, there are many speciality alternative investment firms operating in the marketplace and that number is expected to continue growing. One of the most common reasons for their rise in popularity, is that alternatives investments are not directly correlated with the stock markets and are therefore less likely to be negatively affected by inflation. Because many of the traditional approaches to investing cannot perform at this level, members of the investment-community have begun to regard them as high risk investments and are turning their back on them.

Some Investors Think Brokers Are As Risky As the Stocks

Virtually every investment carries with it a certain amount of risk. Investing is all about properly managing the risks versus the  rewards. Every investment-seeker must measure both of these important factors, to determine whether or not they want to make a long-term commitment to an investment opportunity. For the average investor this can be a daunting task and it is widely recommended in the industry, that financial advisers are consulted if investors have any questions or concerns. That should be the first step in making an investment decision and it is also recommended that investors conduct proper market research, to find the right investment adviser or broker that is right for them.

In many cases in the last five years, millions of investors that lost billions of dollars on the global stock markets, simply did so because they had picked the wrong adviser or broker. When it comes to the stock market, investors win or lose as to the choices their brokers and advisers make. They are, in essence, an investors best bet when they decide to choose them for whatever their reasons. Sometimes they get it right and that’s great for them but unfortunately, for far too many stock investors, they make the wrong decision right from the start and lose their investment. This is why stock market risks continue to raise concerns with investment seekers and over the last five years it has become an even more elevated risk, due to the global financial meltdown a half a decade ago.

When researching for the best stock brokers to choose from an investor should take a look at the past, the present and the future performance of any adviser or broker, as well as the investment options they propose. This will give an snapshot view of what they have done lately, how they are doing now and where they expect to be in the future. The past and present performance records are also great indicators for the future of any particular broker, brokerage or stock and any investor should request this information from investment providers, before committing an investment. Brokers are actually considered the “middleman” between the investor and the stock purchase. So it is important to pick a good one with a good track record of providing a great investment experience for investors. This approach will increase the odds of getting a positive return on any investment decision.

Chinese Investors Encourage Growth in Emerging Markets

Private investors are set to dispense more money into emerging market countries this year as their economies grow intensely and interest rates in developed markets remain low. Though it is much harder for countries to make the transition from emerging to developed economies than commonly thought, only 13 countries have moved from upper middle to high income, (one of the measures of a developed economy) since 1960, according to the World Bank. Of those, five are the Asian tigers; others include Greece, Ireland, Spain and Israel. The world is in for a new change, as we wait for the anticipated boom. Essentially, emerging markets will drive this boom.

Emerging markets will account for the biggest change in the coming future. Developed nations will remain motionless as less-developed nations continue to grow. In 2013, global growth will be a difficult climb but is projected to reach 3.5%; with emerging markets providing much of that boost. When considering the investment potential of emerging market classes, it is clear that they are open for business and more and more investors are seeking access to emerging markets, in hopes of increasing the value of their investment holdings. If growth is the objective, it may be captured better in the early stages by investing in the currency or government bond market, first hard currency then local, rather than equities.

Emerging economies cannot grow in isolation. Economies grow alongside one another. By relying on only one economy, growth is likely to remain static. By relying on a pool of resources in other economies, countries can become independent and determine their own positioning through competitiveness. China, an importing and exporting powerhouse, works in symbiosis with other emerging economies; to assist in the efficient flow of transporting goods. If an emerging economy expects to succeed in the competitive global trade industry, they must work in collaboration with countries like China, and other global leaders within the shipping industry; to get their goods to international consumers.

Investments are being made within broad emerging markets as well as specific and tactical with individual countries. The pace of China’s economic growth will influence numerous trends over coming years. This pace also affects the growth rate of many other emerging markets that do business with China. Analysts believe this growth, should help emerging market stocks outperform their U.S. counterparts and provide alternatives for confused investors, who have grown apprehensive of western markets.