Buy real assets
And you, what are your choices for 2012? And you, what are your choices for 2012? Where should you invest? With all of the recent economical changes that have been happening in the past few years, it is hard to know which direction you should go in for 2012. Stocks, mutual funds, or maybe even just a plain old savings account are all still on the table for the new year. To help you determine which avenue to invest your hard-earned money. Challenges helps you see more clearly, even if the exercise is particularly difficult. Many of last year, it is burned. Because the environment is uncertain, especially a few days of the loss by France of its Triple A and the consequences this will have on the stock portfolios and the credit rate, and therefore real estate and stock portfolios.
This year, you should be aware of this enormous uncertainty about financial investments. By not exposing yourself to too much risk associated with signing banking and insurance products. The solution? Buy real assets. You can be sure to have something. In addition, your investment will be neither created nor managed or sold by one of those financial institutions that seem increasingly fragile. Finally, you participate to the financing and development of the most dynamic economic areas in the world
Invest in emerging economies
For the overall rise in living standards in the world is a great opportunity for all investors. In all countries with sustained economic growth (Brazil, Russia, India, China, Asian
Tigers and Dragons) millions of people discover the “better life”, the “eat better” and “eat more”. It is not, of course, to have blinders on and imagine that we live in a world where all is well: there are still pockets of poverty.
Rather, it is clear that in a number of formerly poor countries, the number of middle-income households and households at home is exploding, thanks to economic growth above 6%. This is a bet on emerging markets, but with a very different perspective of what is usual.
This aspiration of the middle class explains the Chinese boom, but also the huge increase in consumption by China, India, Brazil, beef and pork, cotton, wheat, juice … orange and chocolate. We are witnessing the birth of new modes of life, or rather to the spread around the world, the dominant West.
We must also take into account the scarcity of certain raw materials like oil, as rising global standard of living is pushing up. And appetite of the “new rich” (and conservative investors Western economies) for gold. It will be our great challenge of 2012: Gold, oil and some basic foodstuffs, or rather, to take account of rising living standards of those in our breakfast …
How to invest?
It’s pretty simple. Gold is available in several forms. It is better to avoid pure gold paper (ETFs), which creates more and more questions: one of the last great scams, suffered by the Swiss bank UBS, was on its trackers. Better to buy gold online, or do as many managers of large fortunes: buy gold mines. Gold still has potential.
For oil, it is best to invest in oil companies like Total (Stock code: FP) or Royal Dutch Shell (GB00B03MLX29). Their course depends very much on the black gold. Moreover, the Anglo-Dutch oil giant, whose profits have doubled in the third quarter of 2011, recognizes. “Our quarterly results are on the rise thanks to higher oil prices” said its chief executive, Peter Voser. Otherwise, you can always invest in funds, which as Prim Commodities, rely on oil and other raw materials.
Third challenge: the “breakfast”. Why? Because raising the standard of living increases consumption of products such as orange juice, milk, chocolate, coffee, bacon and of course wheat, for toasts. The production attempts to follow the increase in consumption, but it does not. That’s why prices are rising and will continue to rise.
For many Canadians, it is easier to save than to invest, a new surveys outcome, according to a survey by the Bank of Nova Scotia, half of respondents, investments seem complicated since the objectives associated with it seem vague and distant while saving allows people to set concrete goals.
Among Canadians who responded that saving is more simple than half (52%) believe that saving requires little work or effort, and 36% believe it is safer than investments. Moreover, among those who believe that investing is easy as saving, 14% base their choice on the fact that the money invested is more difficult to remove, since it is often locked and that withdrawals result in penalties. Of this group, 10% indicated that the ability to invest automatically made this easier option.
Canadians see savings as a sure way to put money aside for the short term, while they associate investments for growth and long-term returns, which may cause more risk. For this survey, Scotiabank interested in learning about the habits of saving and investing for Canadians. The survey was conducted among 1011 people from 14 to 25 October 2010.
Canada is increasingly on the lips and in the minds of international investors. It is difficult to remember what other time the country has been such a force relative and absolute, “says Warren Lovely, strategist government issues at Macro Strategy Group of CIBC. Foreign investors believe more and more in Canada’s ability to deliver superior results to other countries, according to an economic report from CIBC.
The study by CIBC World Markets has a growing list of strategic benefits that enhance the interest in the country in the global investment portfolios.This is especially Canada’s strength is its advantage in terms of public finances, says Lovely, who first attracted attention to the fact that Canada has much less need to adjust its tax stabilize the debt ratios. The Canadian provinces are in a better position than some American states, they are less likely to cut programs or adopt measures to increase their income and, consequently, they are less at risk regional economies, says Lovely . The fiscal consolidation will reduce borrowing requirements and protect credit ratings from the federal government and provinces.
The study adds that Canada is different from other countries as a leading growth in the developed world, the most recent IMF forecasts put the country lead the G7 in terms of average real GDP growth in 2010 – 2011. In addition, the Canadian banking sector has sufficient capital and regulatory changes require less deep.
However, some obstacles could interfere with the maintenance of Canada’s superior results. The study notes that a slowdown in the U.S. would have consequences for Canada because three quarters of Canadian exports are the path of the United States. Other factors that cloud the economic outlook for Canada is the impact of the persistently strong Canadian dollar on manufacturing, the overheated housing market and high debt of Canadian households.
