Investment Articles

2010 will undoubtedly be a tough year for some, and a profitable year for others, here are 3 alternative investment strategies/market sectors to profit from the current climate.

Credit

As credit markets remain tight for the forseeable future, especially in the contruction sector, any investor holding cash owns an asset in short supply and high demand. Ususally the preserve of institutional investors and Ultra High Net Worth Individuals, there are now some very transparent and secure structures for smaller investors to take advantage of the lack of credit. Providied the relevant due diligence is undertaken and the required security is in place, there are some fantastic opportunities coming through the alternative investment universe.

Agriculture

Once again supply and demand works in the favour of any investor producing food crops, either for human consumption or for animal feed. The human population is growing, and the amount of agricultural land available for the production is shrinking on a daily basis, providing the ideal platform for growth in both the value of agricultural land and the price of soft-commodities such as wheat. Investing in cultivated agricultural land provides investors with direct access to this asset class, allowing you to take advantage of income from either leasing the land to a farmer, or partnering with a management company to farm the land and share the revenue, also the growth in the value of the underlying asset. Just take a look at Jim Rogers comments on agricultural and farmland investment.

Forestry

Forestry investment has outperformed most other assets for the last 30 years, with managed forests providing an annual average return of 15%. Investment packages are now available for smaller investors to participate in managed forests, profiting from the sale of timber, another depleted asset in high demand. Since 1950 man has wiped out 1/5th of the worlds forests, yet the demand for timber has risen every year, and large increases in demand are projected especially to fuel construction in China, South America and India. Jeremy Grantham, another of the worlds most successful investors is very bullish on forestry and holds 20% of his personal portfolio in managed forests.

For a breakdown on some market leading investment opportunities, check out the Services Section on our website.