Many investors can remember the great market crash of 2008 as though as it was yesterday, so its hard to believe that is was as long as 10 years ago. The stock market has long since recovered and the bull market has continued into 2018, but all good things must come to an end. The continued rise in stocks is also coming up to ten years old so many investors are fearing that the next market correction is upon us.
Those investors who suffered in the last financial crisis, who once may have had the appetite for riskier investments have played it safe and stuck the low returns that bonds and the like provide.
Although this could be a sound strategy for the most part maybe investors should be looking at alternative investments to help them see the higher returns that they deserve. While some alternative investments can be overcomplicated and fraught with danger, many can be simple and quite safe.
Property and Real Estate
Investing in real estate whether a landlord owning houses or apartments or renting to businesses, the goals are generally to acquire regular income, having tenants pay off the mortgage or note over time and ultimately recoup a large amount of equity when the property is sold.
The cons of land and real estate investments are generally it requires a lot of money to buy most land and real estate, with a lower level of liquidity and it could take years to sell.
Land and property owners also have the added burden of paying property taxes and often have to pay for improvements or maintenance, all of which can add up quickly and over time.
Annuities
Considered relatively safe and a good source of annual income, coming in many variations such as immediate, referred variable or fixed rate. Many investors see this as a great option for protection of principle and a for a shield for assets.
The cons of annuities are numerous, there can be issuer credit risk, suitability issues and sky-high fees.
Art and Collectables
Vast amounts are spent on paintings, artefacts and rare antiques. Sports memorabilia can achieve huge returns, there are other forms of art and collectables investors have made a fortune in beyond owning Babe Ruth or Honus Wagner cards.
These all fall under the arts and collectables category and they are generally bought and sold by people who already have lots of money and a knowledge of the sector.
The cons are art and collectables can be very illiquid, there are also many fakes, replicas and forgeries being sold. Collectables as an asset class also is generally taxed at a 28% rate for the profit upon the sale.
Private Equity and Hedge Funds
Many sophisticated and high net worth investors choose hedge funds and private equity funds, expecting to generate returns via income and gains through time. Hedge funds can have very specific targets or asset classes, while others look for opportunities regardless of where they are. Private equity investors are usually looking for above-market returns through time or they are looking for income and/or long-term gains that are not correlated to the markets.
Hedge funds and private equity funds managed by very sophisticated and smart investors come with risks. If an investor wants their capital back, it can take months or years due to lock-up restrictions or due to what the funds are invested in. Hedge funds have been known to have committed fraud (think about the Madoff scandal). Other risks in funds like these are that many investors do not even know how their money is being invested for quite some time.
EcoCrops International offers clients a safe alternative to the above investment vehicles in the ever-growing sector of forestry investment. Investors can enjoy a fully managed investment that is asset-backed, fixed income, fully insured, that shows well above market returns.
To find more information investors can achieve double-digit returns with low risk and full transparency visit www.ecocropsinternational.com
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Company Name: EcoCrops International
Contact Person: James Grainer
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Phone: +34 932 201 207
Address:Rambla de Catalunya, 38, 8ยช planta
City: Barcelona
State: Catalunya 08007
Country: Spain
Website: www.ecocropsinternational.com