Investors now have access to all the financial markets they could ever want.
Even individual investors can now buy exchange-traded funds and other investments that allow them to move money from one nation to another within a matter of minutes. This opportunity allows individual investors to go overseas to chase investment yields that may be higher than they can find in the US, but such opportunities require you to know the importance of interest rate parity in an investment.
How Interest Rate Parity Works
Investing in copper is becoming a very popular trend for those looking to diversify into new metals other than precious metals.
There are a multitude of reasons one might chose to begin investing in copper, so we’ll break down the pros, cons, and the methods for buying copper as an investment.
Why investing in copper is a good idea
Futures and Commodities, Investing
Modern investment theory supports the idea of asset allocation in building a winning portfolio. Most investors, however, still have a common question: what is asset allocation?
Asset allocation is a careful study of picking investments based on their risk-profile. By combining many different investments into one, all-inclusive allocation strategy, an investor can reduce risks, increase returns, and generate a better annual return relative to the total risk.
Asset Allocation Strategies
Despite the turmoil and political unrest, more investors are looking to Africa as the new frontier market.
A frontier market is a market which hasn’t yet reached emerging market condition. Investing in Africa would certainly fit along the guidelines of a frontier market investment.
ETFs for Investing in Africa
Only a few years after the housing bubble in the United States, the concept of investing in property is beginning to take hold among investors.
Investing in real property is a very real investment strategy. Now that rates are at record lows while homes are falling in price, and rents are rising, investing in property may be one of the best ways to retire.
Why Investing in Property is Popular
Readers of this blog know that interest rates have been low—perhaps too low—for a very long time. Now that rates seem to have bottomed (how much lower can rates go, anyway?) investors should look into interest rate hedging strategies to boost their performance.
Interest rate hedging is not as complicated as it is made out to be. In fact, most traders and investors can hedge their interest rate risks fairly easily with financial products new and old.
Interest Rate Hedging 101
I don’t know of any IPO that had as much coverage this year as the daily deal leader Groupon. Many investors see opportunity in the Groupon IPO, noting that it’s a market leading company.
Others, however, see the nonprofitable firm as just another tech boom sure to go bust. What I do know is that no matter your opinion on the company, it’s likely that you lean one way or another, but not right down the middle.
When do Groupon (GRPN) options start trading?
For Financial Planners, the Certified Financial Planner Designation, or CFP for short, is one of the most important designations a financial planner can earn.
The CFP designation is well known, and also presents an opportunity for financial planners to stand out from the crowd.
But what does it mean for a financial planner’s customers? Should you work with a CFP just because they have the Certified Financial Planner designation?
What do CFPs actually know, anyway?
As the markets become less certain, investors demand more certainty. One way to achieve certainty in an investment portfolio is to look for monthly income investments—investment products that provide cash flow each month.
Finding available investments for monthly income can be challenging. Traditional investments like CDs or other fixed-income products are often set to semi-annual or annual payments, which mean that they aren’t suitable for those who need income regularly. We’ve found a few monthly income investments that are widely available in the stock and fund markets, however.
Monthly Income Investments