Since the beginning of the new millennium, an increasing number of investors have begun moving towards commodity investments. Commodity investments have several advantages over regular bonds and stocks. Although the SEC does not recommend putting all your funds into a single asset group like commodities, adding some commodity funds to your portfolio with services like Richard Cayne Meyer can yield some huge returns.
Commodities are any resources that can be traded or sold. They include products like oil, gold and even milk. There are different ways of investing in commodities. You could actually buy the raw commodities, and this works well for smaller products like gold, but may not be practical for others. Instead of buying hundreds of gallons of oil to be stored in your home, you can actually buy stocks in companies that produce these commodities, such as oil and mining companies. You can also purchase commodity-tracking exchange-traded funds. These funds are meant to follow and track commodity prices by purchasing stocks, and other options centered on the commodity. Certified financial professionals like Richard Cayne Meyer International can advise, and help you buy the right commodities.
Commodities are widely considered high risk investments because of their volatility. Commodity companies normally score big time on a resource discovery or at the same time hit big loses. This creates a platform for the possibility of high returns in commodities provided your investment is timed accordingly. Many investors fail to time appropriately and the consequences can be dire. For this reason, it is important to back your commodity investments with secure assets. If your research and timing is perfect and you buy stocks that work out, your returns could boost your portfolio. It emphasizes the importance of seeking qualified consultants like Richard Cayne Meyer to advise you on the right investments to pick.
Commodities offer diversification. This is when you invest in different industries that respond differently to fluctuations in the market. It helps keep steady returns, and avoid huge losses. For instance; investing in oil and car companies provides security against losses when oil prices rise. In this case, the value of your oil stocks will climb while the car stocks will drop. Commodity investments normally move in the opposite direction unlike stocks and bonds. They may steady your portfolio when your other investments are responding to market trends.
Inflation is bad news for any investment. When the value of the dollar drops, American bonds and stocks also fall in value and earn less compared to the rest of the world. When the dollar loses value, it costs more to buy goods overseas. This forces commodity prices up during periods of inflation. Prices also rise because investors sell their stocks and bonds to buy commodity investments. If you have some commodities against your portfolio, you’ll be able to utilize this upswing to your advantage. Meyer Asset Management Ltd Tokyo can help you make the right commodity investment.
Richard Cayne Meyer born in Montreal, Quebec Canada resides in Bangkok Thailand and runs the Meyer Group of Companies www.meyerjapan.com. Prior to which he was residing in Tokyo Japan for over 15 years and is currently CEO of Asia Wealth Group Holdings Ltd a London, UK Stock Exchange listed Financial Holdings Company. Richard Cayne has been involved in the wealth management space in Tokyo Japan and has assisted many High Net worth Japanese families create innovative international tax and wealth management planning solutions. http://www.isdx.com/Asia Wealth Group.