Friday, 8 December 2017

Brexit Economic Impact Could Irreparably Damage Portfolio

Brexit’s economic impact could irreparably damage an investor's portfolio. To me, it seems like a good time to reassess investments and consider alternatives.



Officials here in the UK believe that the nation should prepare itself for "a profound shift in the way the economy operates." Some have suggested that it will operate in a manner that is similar to that of the 2008 financial crisis. If that is true, Britain and UK investors must prepare for a "paradigm change" in the economy.

According to the National Institute of Economic and Social Research (NIESR), Britain’s economy grew at a solid rate of 0.5 percent in the three months leading up to November 2017. The CBI expects that the GDP will expand by 1.5% in both 2017 and 2018. It also argues that CPI inflation peaked at 3% in October 2017, and "should now ease gradually."

GDP growth at 0.5 per cent is somewhat higher than the economy’s speed limit. If, as we expect, the economy continues to expand around this pace and inflation remains elevated, there is a case for the Bank of England to gradually raise the policy rate to stop the economy from overheating. - Amit Kara, NIESR Economist

Making Brexit matters even more challenging for British officials is that, at the moment, it has been said that the UK government has made no formal assessments of Brexit’s economic impact of leaving the 28-nation European Union. This has many of us fearing that Britain may not have a deal by the time it leaves officially on March 29th, 2019. Failing to do so, could mean that May's government would collapse and create irreparable damage to our investment portfolio. To me, it seems like a good time to reassess my holdings and consider alternatives like those offered at Davenport Laroche.

On a more positive note, new analysis from bankers at Bank of America Merrill Lynch, suggests that the negative impact of a hard Brexit on the UK economy has been "surprisingly small."

Tuesday, 14 November 2017

Ensure Investment Additions Are Consistent With Your Strategy

Investors must ensure that new investment additions are consistent with their existing investing strategy, and will propel them closer toward investment goals.



Under some circumstances it is ideal to sell your investments, and better position yourself in the financial markets. If you do so, it is necessary to fill the vacancies with investment options that will protect your wealth, and move you closer to your investing goals. This approach will require you to look for opportunities that are inline with your existing investment strategy.

Your own strategy for investing will be heavily influenced by your tolerance for risk and the information you receive from other resources, such as investor reviews, blogs, forums, and communities. Combined, these peer influences will give you the confidence to invest, and will form the basis for making educated investing choices and decisions. Without them, you may lose sight of your goals and unknowingly deviate from your investing strategy.

When it comes to investing risks, investors prefer to reduce their exposure. Investing should be challenging enough to excite investors and comfortable enough to be fun. This requires investment-seekers to carefully balance risk and reward when shortlisting and choosing investments.

When accepting advice from others, be cautious of their personal and professional motives. Some investment advisers and money managers share bias information that furthers their investing goals, not those of their clients or audience. An example of this is the Alexis Assadi attack on Davenport Laroche.

It is common practice for investment-seekers to look for advice from others before choosing investments. This valuable investment information forms the basis of an investor’s argument when they are internally weighing the risk versus the reward. The decisions reached here will ensure that all new additions are consistent with the existing investing strategy, and will propel investors closer toward their investment goals.

Sunday, 24 September 2017

Rely Upon These Investments To Get Through Financial Crisis

Investors have moved away from poorly performing stock markets and bonds, and are instead investing in alternative investments to get through a financial crisis.



Since the global financial crisis that occurred in 2008-2009, investors have taken a much more cautious approach to investing in traditional investments. Over the course of the last decade, their attention has been focused on moving away from the risks and poor performance associated with stocks and bonds, and instead they are adopting an investing strategy that includes exposure to alternative investments.

Motivated by the fear of another financial crisis, the investment community has grown fond of tangible, hard assets that have proven they can consistently deliver great returns; especially in adverse and uncertain economic times. If you invest in containers for example, the established lease agreement will provide a steady monthly return, that many investors use to supplement their income. Like any other commodity, shipping containers retain much of their value in times of crisis. This means they can be relied upon to strengthen your portfolio from any shortcomings resulting from your exposure to traditional holdings.

Aside from container investments, other hard, tangible assets include gold, fine wine, and real estate, to name a few of the most common alternatives. These investments are touchable and therefore more appealing and appreciable to cautious investors. In contrast, the stock and bond market is driven by vision. Stock prices for example are based upon forecasted profits, not actual revenues. Likewise, a country’s outlook can affect the value of their bonds. If investors lose confidence and do not share the company’s or country’s vision for predicted prosperity, the stock’s or bond’s value drops.

The allure of stocks and bonds have faded and investors are recognizing that they have alternatives.This, in partnership with the fact that private investors are ditching investment advisers and are taking control of their investment portfolio, means that a decreasing number of investors are relying upon traditional methods and strategies to fuel their financial success. That is bad news for the future interest in bond and stock markets.

Tuesday, 15 August 2017

International Investors Remain Committed To UK Real Estate

New research has found that, despite the ongoing uncertainty over Brexit, international investment-seekers remain committed to the UK's real estate market.



One of my greatest concerns since the vote to leave the European Union has been whether the international community will continue to view of the UK as a financial hub and appealing place for investment. One area that could be the most adversely affected by a hard Brexit is real estate investments. In 2016, investing in real estate accounted for £44.4 billion of the total investment in the UK.

Uncertainty naturally has an impact on the industry’s attitude towards investing in the UK, but these attitudes also vary by investor, the origins of capital, investment strategy and the stance on Brexit. - Andy Pyle, KPMG’s UK Head of Real Estate

There have been many studies to help the investment community understand the effect leaving the European Union could have on the United Kingdom. New research has found that international investors remain committed to the UK's real estate market despite the ongoing uncertainty over Brexit. A survey of 60 of the world’s leading institutional investors found that 46% intend to continue with the same level of investment in UK properties; only 10% said they expected to stop investments altogether.

On a positive note, data from residential property adviser London Central Portfolio (LCP) shows that Indian investors have increased their spending in London, with the country’s buyers now accounting for 22% of prime property sales in 2016-2017. The Middle East slipped into third place, representing 21% of all sales. The “Prime” areas of London include Kensington and Chelsea, and the City of Westminster

Recent surveys have demonstrated the continued appetite among global real estate investors for opportunities in the UK, despite ongoing economic and political uncertainty. What Brexit means for real estate investing remains unknown over the long term, unfolding day by day. That is why there is a vital need to be prepared for the unexpected.

Tuesday, 25 July 2017

This Caused Investors To Reassess Their Investment Holdings

The Global Financial Crisis exposed how risky traditional investments could be. This caused many investors to reassess their investment portfolio holdings.



In 2008 and 2009 the world experienced a major financial crisis; some investors lost their entire life savings, other people lost their homes and livelihood. The disaster exposed how fragile the global financial system was, and how risky traditional investments could be. These crippling events caused many in the investment community to reassess their portfolio holdings, as well as revisit their tolerance for risk.

During the reevaluation process, many investors discovered other investing options and quickly moved away from an investment marketplace that has traditionally been populated with overvalued stocks and poorly performing bonds. This exodus from equities, bonds, and real estate (to name a few of the common choices) to the safety of alternative investments, demonstrated how frustrated the investment community had become with the traditional holdings in their portfolio. It would seem that nowadays investors want to invest in containers, rather than the S&P 500, REITs, or Treasury bonds.

Along with their exit from traditional investment holdings, an increasing number of investors are leaving their money manager and choosing not to rely upon a financial adviser. Instead, more and more members of the investment community are conducting their own investment research to uncover safer, more profitable investing options. In doing so, investment-seekers are likely to consider investments that otherwise may not have received any of their attention or interest.

Because investment-seekers can independently pursue answers to their financial questions, they have become less dependent upon the traditional avenues of investment. With the help of interviews, books, and reviews, international investors are discovering ways they can educate themselves, and dig up appealing opportunities on their own. This new, more detailed approach to investing is helping private investors make better, more confident investment choices. In the current uncertain investing environment, this has become increasingly important to the world’s cautious investment-seekers.

Saturday, 8 July 2017

Container Investing is an Alternative You Haven’t Considered

Because of the poor performance and increasing risk associated with traditional investments, a growing number of investors are considering other alternatives.



Investors’ steadily decreasing tolerance for risk has them moving away from bonds with poor returns and the risky stock market, to the safety of income-generating assets like shipping containers and real estate. Revenue-producing investments, particularly those alternatives which deliver a monthly return, offer investors the opportunity to supplement their fixed-income or reinvest profits for compounded returns. Those investors who invest in containers and real estate understand this well.

The tangibility of these investments is also very appealing to the investment community. Historically during times of crisis, conflict, and war, investors have sought the safety of hard assets to protect their wealth against financial threats, like inflation. That said, amateur and experienced investors alike are allotting a portion of their investment portfolio to alternative assets that enjoy a lower risk and consistent demand. For more than fifty years shipping container investments have met this criteria.

The fact that shipping containers are needed in every region of the world, ensures that there will be a strong demand for them for decades to come. Even during times of economic uncertainty, government officials must constantly encourage growth in their economy. To be successful, this requires important contributions from shipping containers, the container shipping industry, and the investment community.

Transport and logistics companies appreciate the value of cargo containers. Thus, to capitalize on opportunities across the globe, they are repeatedly making investments to maintain and improve their shipping container fleet. This continued investment demonstrates their commitment to meeting the demands of their clients and facilitating growth in the global economy. In much the same way container lines do, private investors can invest in containers and profit from steady economic growth and prosperity around the world.

Monday, 29 May 2017

War And Conflict Affects Investments And Investment Returns

There is more than just a cost for the military when there is war. Conflicts in areas across the globe are affecting investments and investment returns.



Conflicts in areas across the globe are affecting investments and investment returns. There is more than just a cost for the military when there is war. Shipping and logistics can be interrupted, and disrupt the regular flow of goods to key economic  regions. This can have an adverse effect on the performance of businesses' profits, and hurt economies across the globe. In turn, this affects investments and investors’ returns.

Because most of the world's conflicts are focused in developing and emerging markets, where manufacturing can be done more cheaply, there is the possibility that a war could affect the supply of important products; and thereby cripple any number of key industries. For example, a conflict with North Korea could prevent the flow of goods from manufacturers in South Korea, China, Malaysia, The Philippines, and/or Vietnam. Such a disruption would certainly damage the performance of the world’s leading businesses - like Sony and Samsung. This will create instability and uncertainty, and further hurt international stock markets.

Aside from the disruption in manufacturing, shipping, and logistics sectors, the collapse of international trade deals and the rise of protectionism will certainly contribute to the threat of inflation around the world.  You can expect that when the existing global supply chains are altered to accommodate protectionist policies, the cost of goods will rise shortly thereafter. With the price of things rising because of inflation, this means that an investor's dollar will not go as far when investment returns are paid.

The deterioration in the value of investment returns will be most worrisome for those investors who are investing and saving for retirement. This is unless investors have prepared for the volatility by investing in income generating investments that supplement their earnings while retired. These investments often pay a monthly dividend at a higher rate of return, to help investors recoup losses incurred from inflation and/or conflict. Because of their important contributions during times of war and conflict,, investors should consider including investments that produce income, as part of a well-balanced, diversified portfolio.