What will successful investing in 2013 require as we continue to watch the European Crisis unfold? How will the ticking American and Japanese debt bomb effect financial markets around the world?
What if a war breaks out in the Middle East or an effort by one or more countries to stop the Iranians from acquiring a nuclear bomb leads to a protracted conflict?
These issues will all effect the opportunities that will be available to investors throughout the world. Here at the Day Trading Academy we will help the entrepreneur with investments that will be profitable despite global events and continuing instability in the worlds financial markets.
Hedging Risk
One of the first issues that an investor must consider is finding a hedge against currency devaluation and inflation. There are a number of choices that one could employ. One is precious metals. Some investors may feel that all precious metals offer this protection. They do to a point. However, some of them hold more value because they have industrial purposes as well as monetary value.
A number of these metals are also more easily sold. One also must choose in what form they wish to buy the metal and whether they wish to take possession of their actual purchase.
Another option is to buy foreign currencies that are more likely to hold their value despite the continuing economic and financial instability in international markets.
These monetarily stable countries are becoming fewer in number.
As you are looking to buy foreign currency you might as well decide where you will want to deposit the profits from your business ventures. Governments of cash strapped countries will more than likely increase their efforts to take a larger share of your profits. A wise investor may consider an alternative. Singapore for example, is very business friendly to individuals who would like to incorporate or set up operations overseas.
Real Estate
Another prospect for investment in 2013 is in real estate. Not in the traditional manner with rental units or commercial property. The present market is not conducive to “flipping” at this time. One would be better to consider buying land that has high value for agricultural use. Land that is already in production might be best since you will be able to rent it out while your investment grows.
Land purchased for timber production will also increase in value and has the added value of an ongoing return if properly managed.
Land purchased for mineral or energy development can also hold great potential. You will of course need to understand all the necessary permits, licensing and rules pertaining to any future alteration of the property. This can vary greatly depending on the state or country that the land is located in.
Investing in Stocks
Company stocks that are developing energy resources will continue to be a good investment but an investor will need to be careful of changing laws for development and environmental concerns in the country that they are investing in. One also must be cautious of laws as it pertains to foreign purchases of stocks and assets.
The industries involved in providing medicines and health care for the elderly may still hold some investment opportunities but one must be careful of government intervention when it comes to profit potential.
Tourism Industry
Another area of possible investment is in the tourist industry. Not in recession wracked Europe or the United States but Southeast Asia and especially Latin America with an emphasis on South America.
We would recommend local partners if this endeavor however.
If you are interested in individual stocks careful consideration must be given to current trends and developments. Areas to consider would be home improvement, some technology areas, biomedical, and of course as always energy. In the United States we would caution investment in the medical field until the full impact of the new health care laws are known.
Investment in tangible assets like commodities can also bring good investment returns in 2013.
As countries like China, India, Brazil, Turkey, Russia, Mexico and others continue to grow their economies the demand for copper, iron ore, coal, and other minerals will continue to increase. There are a number of ways to do this.
An additional prospect for investment in 2013 would include taking a look at art and cultural antiques. There is still a good market for many of these items. You will however, either need expert advice or become a connoisseur yourself.
A word of advice “never buy an item you don’t like in case you made the wrong decision in true appreciation value.” Also remember for investment purposes, it is only worth what someone else is willing to pay for it.