In the market today, there is an abundance of opportunities to find and make an investment. Without looking too far, investors will discover the stock markets, government-bank-corporate bonds, real estate investments, insurance policies, mutual/hedge funds and the traditional list goes on. With that being said, it would appear that uncovering investing opportunities is not the challenge for investors. However, finding a good investment is.
The fact that today’s economic environment is still quite fragile means that any one of the traditional investment offerings could without (much) warning, become heavily influenced by a number of social and political factors. The recent (and ongoing) events in both the European Union and the United States have repeatedly caused concerns for global markets, as well as the worldwide investment community. Albeit China and the emerging markets are giving investors some confidence with their consistent growth figures, investment-seekers are becoming increasingly concerned with the international economic climate and are searching for alternative investment opportunities that shield them from the uncertainty of the traditional investment offerings.
Few could argue that the financial crisis that began in 2008 was an eye-opener for the investment community. Many of the investments found in the average investor’s portfolio at the time, did little (if anything) to preserve the investor’s personal wealth, let alone any gains that were made over the decade before. So, given the magnitude of financial devastation, how did the big investment firms and affluent investors manage to save themselves? Prior to 2008, institutional and super-wealthy investors often maintained a number of investment secrets in their portfolio, that could guard their fortune against tumultuous markets and investment risks.
For the most part these secret offerings were comprised of hard assets that provide the foundation for global economic growth and advancement, like shipping containers and base metals for example, but were not closely associated with other the other asset classes that suffered losses; when the market took a plunge. Now that many of these secret strategies have made their way into the mainstream investment community, investors know to protect themselves (and their wealth) by making investments that deviate from the norm and distance themselves from the risks associated with most traditional investments, like stocks and bonds.