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The financial investment is not limited to financial markets assets and the current uncertainties obviously feed such thoughts. Indeed, there are many investment vehicles that could create value in a portfolio. Let’s review few investment ideas mentioned on Next-Finance website.
First, it is important to remind readers that thinking about alternative investments should not occur exclusively during a crisis. On the contrary, it must be initiated in normal periods to benefit from the added value (diversification, protection, performance) even in times of crisis.
Moreover, the objective of this review is not to provide investment advice (we do not have a crystal ball!) but to identify and highlight some themes, already mentioned in the past on this portal, that could have drawn attention to. Readers should form their own opinion based on investment idea’s description. However, we will focus on more or less simple investment ideas that are close to our everyday world.
Finally it necessary to note that we do not forecast nor suggest the end of stock market investment. In a previous article, we mentioned the dynamics of the crisis management and some market professionals now point out sources of hope on the bonds (emerging and convertible), currencies and even equities. Ultimately, as Mory Doré so aptly said in its publications «The negative news flow coming from financial markets does not mean we should give up. Let us be reassured. Opportunities will still be around. The only real question nowadays is how to allocate between real assets and financial assets»
That said, one can list, without any ranking, the following themes:
PASSION
Passion can be a theme of investment. Some investors may be enthusiastic markets fans and therefore are likely to assimilate their stock market investments to “passion investment”. In our vision of an alternative investment, we impose on the passion to be independent of the markets. Here the chosen example is wine. There are many investment vehicles with more or less good performances and we will highlight a product often mentioned on this portal.
With stable performance during the previous crisis (2008), such well-managed supports can be an interesting source of diversification and performances. Like Véronique Cioli, Partner at Elite Advisers said «Wine investment offers an investment plan in line with our grandparents’ understanding of savings, an investment in a product that we know» According to her, the profitability outlook remains positive on the industry in general and on their product, Noble Crus, in particular. Now, others players want to ride this wave. It is the case of UFG-LFG, which has just launched the first French Sicav based on wine.
GOING BACK TO THE LAND
The massive industrialization of the developed economies has contributed to neglect capital gains generated by land working. Management of agricultural resources is and will remain a challenge for all countries in the world. Many players, like the company Pergam Finances, have already anticipated the trend as noted in an article in 2009: article1446. What about the current profitability and social impact ? Let’s point out that beyond land purchases, there are now more and more financial markets’ instruments related to farming, including hedging instruments and deep analysis of the risks of the sector
NATURE
LUXURY
REAL ESTATE
It is difficult to carry out an overview of alternative investments without a mention to real estate. There is no need to introduce this theme as it is the main topic of various media and discussions. A theme with a painful past linked to the collapse of US housing markets->article295] and Spanish real estate bubble, but also a current good situation (at least for some) with sustained growth in French real estate. The key probably lies in the ability to understand the internal and external factors of the market. We will not write about a particular product but it will simply encourage readers to think about the dynamics of real estate prices, but also on the state of some markets, knowing that [there are some hedging instruments available.
SOCIAL
We shall end with a social note, unfortunately, often overlooked.
– Finally, basic social acts can generate a non negligible capital gain (or loss) . The institution of marriage may even be part of those acts as outlined in the article on an economic approach to marriage.
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