With treasury rates hovering around 2.4 percent, and bank long term certificates of deposit topping out at around 2.7 percent, it's not surprising that many investors look for a better return on their money. Most investors, taking in account investment fees, inflation and taxes, look for a minimum return of around 8 percent, which is achievable if you do your investment research. Here are five good investment strategies you can employ if you carefully watch them carefully.
Currency Speculation
A good Forex trader can make as much as 20 percent on their money in a single year, but you have to be really knowledgable concerning currency strategies. Get training, invest only a defined percentage of your money, and watch the market continuously. Currency speculation is perhaps the most volatile of investments, and as the old saying goes, "money never sleeps." In a similar fashion, political news can send ripple effects far and wide in the currency game.
The U.S. dollar, the euro, the Japanese yen, the pound sterling, the Chinese renminbi, and the Canadian and Australian dollar are the most commonly traded currencies, but if you are going to speculate in something less common, like the Iraqi dinar, then be sure and do research and read a specialty news source such as Dinar News.
Investment in Commodities
Commodities such as gold, silver, platinum, wheat, soy, pork bellies, heating oil, and gasoline are all up for investment. Here to, like currencies, trading in commodities is a risky busy, entered primarily by either risky gamblers or savvy investors. In order to safely invest in commodities consistently, you'll probably need to subscribe to a commodity forecasting service, although good ones can be costly, and past performance is no indication of future results.
Real Estate Investment Trusts
Real estate investment trusts or REITS offer high rates of return, in part by taking advantage of governmental tax breaks, both local, state and federal. The trusts invest in pools, either residential or commercial real estate such as shopping malls. If you get in on a great real estate investment trust and can ride the up and down swings of the economy, it's possible to double your money in a few, short years. The best advice for people who are considering investing in real estate investment trusts is to be sure and pin down the sellers as to what type of property they plan on investing in, find out the projected prospects for real estate in your area, and consult with as many as three or four investment experts before you invest.
High Yield Bonds
High yield bonds are issued by both foreign governments as well as private companies. The yield on such bonds can be as much as 10 or 15 percent, making them very attractive alternatives to low rate government treasury bonds. However, potential investors have to complete their due diligence, as the higher the rate the bond offers, the riskier they are. It's not uncommon for high yield bonds to be essentially junk bonds, and that not only includes bonds by private companies, but foreign companies with unstable governments that are full of corruption. You need to thorough research on any high yield bond and also be aware of any factors in the marketplace that will likely affect it. It's not uncommon for companies to be involved in lawsuits, or be under investigation by government regulators, and one loss or hit by either can mean the loss of your hard-earned principle. Never the less, some high yield bonds do pay off handsomely, and without a hitch, hence their continued attractiveness.
Investment in Foreign Emerging Markets
Emerging markets such as China, Brazil, and India offer government stocks, bonds, and private investments that are attractive to consider. Keep in mind though, that spurts in growth tend to be volatile in such countries, and there are many factors at play such as politics and global trade policies. Before investing, you might ask yourself whether you have the know-how to keep up with potential changes within the country.
