Ostrich or Rooster; which one are you? The ostriches, those worried investors taking cover ahead of a looming stock market correction, think that if they bury their heads in the sand; perhaps they can avoid the impending doom. On the other hand, the roosters in the markets are still strutting around the barnyard, acting like they know the ingredients in the secret sauce. Who should you believe? In my mind, investing in an opportunity that focuses on long-term investment success is the best strategy to adopt. To be truthful, I am not one for the roller coaster ride offered by the stock and bond markets.
While investors, agents, brokers and analysts are constantly on the lookout for steady returns and balanced risk, private investors are no different. For many, this search has lead to a review of alternative investments. Why? Investing in alternative offerings falls into the risk assessment and return expectations category of investments, as they are outside the traditional market. This is a good thing, because they are generally unaffected by poor performances offered by the Dow or S & P 500. What were once looked upon as high-risk, under-regulated and just plain unheard of, are now a part of nearly every successful wealth-building strategy. Nowadays, from opportunities in the global shipping industry to junior gold mining stocks, many alternative investments are profiting from economic growth and performing incredibly well; regardless of what is happening in the stock or bond market.
Although research proves to be time consuming, it is well worth the effort. Ensuring your the success of your investments over the long-term depends upon you becoming a knowledgeable investor, that can make confident decisions based more on fact, than speculation. Take the most recent reports on the jobless rate in the United States. The figure being down from earlier estimates translates into fewer layoffs, which further translates into widespread economic growth. Another great example is what is happening in global container shipping industry. At the moment, the world’s 3 largest cargo carriers are forming a shipping alliance to capture additional market share, which translates into more opportunities to make investments that will profit from the global rise in economic growth. Look at junior gold mining stocks* as well. A decade ago they were down 80%, then sharply rose 611%. The list of alternatives that are performing well, or are poised to do well, is a long one.
This brings me back to my original question. Is the market long overdue for a correction? Looking around I see a growing number of investors who are bracing themselves for it. Are you looking to alternative investments to balance the risks posed by stock investments?
* StansburyResearch.com, **money.cnn.com