We get it. Investing can be a daunting task. Until recently the average investor’s options have been extremely limited. Lets take a look at the current and standard options for investor Joe.
In traditional circles, investment options proposed by most Investment Advisors are typically limited to bonds, and treasuries or bank certificates. Otherwise investor Joe gets offered to place his funds with professional “stock pickers” (i.e. mutual funds, unit trusts etc…) who try their hardest to beat the market. Granted there are always opportunities for profit here, the proven reality is that unfortunately most of these funds actually fail to consistently beat the market.
As a result of the above, many default to becoming “indexers” by investing in Index Funds. This investment approach at least acknowledges the difficulty in making money in the markets, and merely tries to match the market instead.
This is becoming extremely popular with the masses and there is of course some merit behind it. On a personal level, we view this as giving up altogether, and we are the type of people who prefer to explore alternatives before “settling” or following the herd (which is usually dangerous).
There are also some looming concerns arising, as cracks in the edifice of index investing are already beginning to show. This is especially true with the copious amounts of cash pouring in to index funds (the “masses” have now flooded this market). There are some concerns unfolding with this massive herd migration as the market becomes overvalued and significantly inflates index stocks over non-index stocks.
This often inflates already-hot market sectors and it makes the market overall less efficient (less honest) as no one is considering the fundamentals. While index averages are often nice to think about, the truth is that these averages are based on very volatile and lengthy periods of dramatic ups and downs. One needs to choose the proper indexes, time their participation wisely, and basically commit to these for life.
These risks becomes more evident as we are approaching new highs in a long-toothed bull market. Many of the world’s top financial analysts are predicting perilous times ahead in the world of “traditional” investing, and we know that the next severe bear market around the corner will certainly test new index investors’ pain thresholds – especially as we approach the point of Euphoria on the investor wave).
Alright, we know… it can all sound rather despairing, but the worst thing you can do is “opt out” entirely and let your money rot a way in a near-zero interest savings account.
It turns out there ARE some viable other options!
For the growing number of Investor Joe’s (and Josephine’s) out there who are fed up with the lack of options, or who are getting tired of watching their investment accounts gather dust, we are happy to tell you, that the current investment landscape is not all doom and gloom anymore, and it is rapidly changing these days. Thus, there are some attractive options available now. Welcome Alternative Investing!
Simply put, this asset class is comprised of non-traditional investments. This can be chalk full of interesting and exciting options, many of which people are very passionate about such as fine wine, rare art, music, sports industries, technology, precious metals, gemstones, patents, stamps, start-ups, agriculture, even rare gun collections and exotic car collections. On the flip side, it can also include sophisticated and extremely complex financially engineered products such as derivatives, hedge fund strategies, private equity, leveraged real estate, and debt instrument trading.
The problem with this asset class is that unlike the traditional ones, there are sooo many options to choose from that investors get lost easily, or they simply do not have the experience or ability to gain access to the highest quality ones. This often leaves one with the feeling of “paralysis by analysis”.
One must invest with a specialist in their specific niche. This isn’t a place for a “jack of all trades”. In our case, (spoiler alert – if our name didn’t give it away) we specialize solely in Institutional Grade Managed Forex Trading. We almost obsessively live, eat, breath and sleep it.
Using new technologies is critical to success (this is especially true in the financial markets). In our case we use computer programs to trade the market for us. Further, we use game changing technology to protect our capital, manage our risk, customize our risk, and tailor it to individual’s unique and changing needs – investing is not “one size fits all”.
It doesn’t need to be complex – really! And it shouldn’t be. Alternative investing needs to be accessible, transparent, and easy to participate in. It need not be measured by its degree of complexity, (sometimes “less is more”). This is why we choose Managed Forex Trading as our ideal investment!
Our unique programs have been meticulously researched, analyzed and stress-tested, and have proven to shine in their ability to profit in virtually ANY economic environment. Time after time, the successful growth of this investment class in general has proven to thrive regardless of conditions such as a strong economy, low inflation, high interest rates, or a bloated or depressed stock market. While our funds are no panacea to endless profits, we strongly feel we obtain an even further edge by sticking to our key investment formula and always staying true to our Company’s Core Investment Strategy.
This chart illustrates something called the Markowitz Efficient Frontier. It represents all portfolios with the best risk-adjusted rates of return (as measured by volatility). We can see that the inclusion of alternative investments can move the efficient frontier up and to the left. What does this mean exactly? It means that by adding quality alternatives to ones portfolio like our Managed Forex Accounts, that for a given level of return, risk is lower, or for a given level of risk, return is higher – creating the optimal combination of risk and return!