Time and again, alternative investments have demonstrated to investors that they can out-perform stock market investments, by a growing profit margin.
When it comes to investing in the stock market, it is widely recommended by leading investment experts to “buy low and sell high.” Realistically this is (of course) the best case scenario, and hardly a fool-proof plan for investing. Let’s stop for a moment and consider how many investors did not get the opportunity to sell their plummeting stocks, when the global financial crisis began to unfold in 2008. At that time, many unsuspecting investors suffered significant losses, not just in terms of their assets but to their confidence and trust in the established traditional investment model; as well. Because of this, many investment-seekers regard stocks and bonds as a very risky investment strategy, and are moving away from this traditional investment offering.
There was a time when the traditional investing methods were seen as the only investment option available to private investors. Nowadays, thanks to the abundance of profitable alternative investment options now available in the marketplace, that fact is changing. Over the course of the last five years (since 2008), alternative investment offerings have been emerging and demonstrating to the investment community, that they can consistently out-perform risky stock market investments by a very attractive profit margin; that (to the surprise of most) continues to widen. As investment alternatives have become increasingly more popular with the international investment community, the traditional options like the stock market have been losing long-time investors, to offerings with lower investing risk and more favorable returns.
In most instances, those investors who have invested in established alternative investments are now enjoying better-than average returns, both consistently and constantly. Because of this, most have absolutely no intention of selling-off their investment, at any time in the near future. In fact, many investors have come to realize the long-term value in keeping their alternative holdings. It is what happy investors are more commonly referring to as, “receiving a great return on investment.” With that being said, the mass exodus out of traditional investments is underway and discouraged stock market investors are becoming more and more inclined to sell-off their risky stock investments, regardless of whether it is the “best time” to do so or not.
Whether it be the truth about an investment’s projections, forecasts or past market performance, investors need facts they can rely upon, before investing.
Every investor’s journey toward an investment decision begins with a search for the true facts. Whether it be the truth about an investment’s long-term projections, profit forecasts or past market performance, the investment community is demanding credible facts they can rely upon, when it comes time to make the final decision to invest in an opportunity; or not. Without a doubt, every investor certainly recognizes the importance of collecting and analyzing corporate figures and forecast, as well as learning the truth about investments, before committing to an investment offering. It goes without saying that if the facts at the foundation of a body of research are not reliable, then the decision made about making the investment cannot be reliable either.
Although questions can sometimes add to an investor’s confusion and apprehensions, investment-seekers must realize that every answer they arrive at is another step closer to distinguishing fact from fiction. The more questions an investment-seeker is able to ask, the more answers they can expect to receive and in turn, the less doubt there will be. When seeking the truth about investing, investors must be diligent in collecting establish facts that prove the credibility of an investment offering, while at the same time eliminating any skepticism that is preventing an investor from building the confidence they need; to make a financial commitment.
Make no mistake, the search for the truth about investments should be exhaustive, comprehensive and thorough. As the saying goes, leave no stone unturned. Serious investors should expect that it will take them several weeks or even months to collect the detailed information from reliable sources, especially if they are determined to uncover the complete truth and reach an educated decision about investing. Once the in-depth research is completed, investment seekers must be cynical with everything that is presented and carefully scrutinize every piece of information that causes them any degree of concern. Understand that this is necessary if they hope to enjoy a great investing experience, now and in the future.
At the foundation of every decision to invest, an investor should find the truth about investing, supported by undeniable fact. It is the satisfaction derived from addressing any shadow of doubt, that will build an investor’s confidence, ease their apprehensions about investing and give them a good reason to invest. Without establishing the facts for themselves, an investor is left to rely upon unsubstantiated information that could be intended to mislead them and will more than likely result in a poor investment decision and possible losses.
Investors recognize that there are investing alternatives that do not include placing money in banks. This is likely to cause banks to experience withdrawals.
When the Great Depression unfolded in the 1930’s, many people lost their trust in the banking sector and stock markets and instead chose to store their money in a mattress or any other place they felt it was safe. For most discouraged investors, it seemed like their only viable option at the time. It took many years before the investment community began to trust the banking system and stock markets. Nowadays the average citizen, particularly in Europe and the United States, has again lost their trust in the banks and the stock markets; but at least now they have viable investment alternatives to turn to.
What has occurred in Cyprus in the past, with the banks seizing innocent depositor’s money, amounts to nothing less than stealing from the poor to give to the rich. While they may have succeeded this time, investors expect that there will be serious consequences in the future, as a result. Leaders in the European Union have already widely acknowledged that this “formula” could be instituted in other weak EU countries, that demonstrate they are unable to manage their own financial affairs. In other words, the average citizen will be expected to help pay the bailout bill, even if they cannot afford to do so. This precedent set in Cyprus will no doubt cripple the country’s economy and cause serious hardship in people’s lives.
Although there are restrictions put in place for depositors on how much they can take out daily, the banks should realize that these traditional investments seem risky and it will be a long time before many people in Cyprus are going to put their money back into the banks for fear of having it confiscated. This policy by the EU leaders will result in many European citizens from other countries pulling out their money from the banks and seek other options where they feel their money will not be “stolen” from them. The European banks will ultimately feel the biggest losses, when this becomes a stark reality in the coming months and years, and rightfully so. Why should they profit from their own mistakes? In the business world if you make mistakes that bankrupt your company why would investors be interested in supporting such massive mismanagement? They would simply look to more profitable and safer opportunities.
Nowadays, there are many more profitable alternatives that investors can invest in, instead of putting their money into untrustworthy banks or stocks. In fact, many of the options that have emerged have proven to deliver consistent returns even during the last five years, when the markets were exposed to economic and political turmoil. It is expected that in Europe, many investors will abandon the banks and the stock markets in favor of investing in alternative investments, that will protect their money and grow it steadily; without any fear of having it lost or confiscated.
People around the world, are continuing to feel the adverse effects, of a poor economy. As such, safe investments with high returns, are receiving more attention; than high risk stocks.
Here are 4 of the most common safe investments, with a high return potential, that an experienced or amateur investor; can feel safe investing in:
- High Interest Savings Account. Because these savings accounts are insured by the FDIC, it is widely considered one of the safest investment opportunities.
- Certificates of Deposit or CDs. Although these investments provide a greater return, than a general savings account, CDs must be left untouched; for a pre-determined period of time.
- Money Market Investments. This type of investment includes Treasury Bills and federally-provided short term securities, and provide great potential; for a favorable return.
- High Yield Bonds. Although this approach is riskier, than the previous 3 investment opportunities listed, they are still safer than most stock options.
With some close rate comparison on the part of the investor, the highest returns from low-risk investments can be uncovered; and generate the best safe investment return.
Read more: Low Risk Investment Opportunities With High Yield Potential.