Guest Blog: Investment Intelligence- Making the right decisions

Guest Blog: Investment Intelligence- Making the right decisions (pic by jungle_boy on flickr)

Making the right decision with investments is a difficult task. In order to become a successful investor, finding the right opportunity is key.

With that in mind, here is a list composed to help you make smart financial decisions for the year ahead.

Investment options

Emerging markets As per the research conducted by the Association of Investment Companies (AIC), emerging markets are predicted to play a larger role in the global gross domestic product (GDP) output. As a result, a good number of fund managers are of the view that it’ll become another source of steady income.

Small enterprisesThe AIC research also revealed that fund managers who opted for blue chip stocks in 2012 are shunning them in 2013. Most of the fund managers expect small and mid-sized company stocks to perform better than blue chip ones.

Gold and natural reserves The price of gold and similar other precious metals has been increasing ever since the US government started implementing its bond-buying program (Quantitative easing – QE4) in order to promote a healthier local economy. So, investors can rely on gold at the moment and may buy the yellow metal or opt for the gold derivatives. This is because the U.S. gold futures have been providing rates of about $1,910 per ounce on the New York Commodity Exchange. Moreover, a lot of investment options are also available in the natural resources sector.

Global equity income funds There is no denying the fact that those government bonds have lost their sheen and so, people are on the look-out for better alternatives. In this case, the profits generated by the equity funds are much better and that can be expected to make-up for the loss or deficiency incurred as a result of poor performing bonds. A lot of large corporations are now paying very good dividends as compared to UK government bonds. Similarly, income investors are diversifying their portfolio and shifting from UK income funds to international financial tools.

Investment experts seem to be suggesting people try their luck with the overseas financial tools like global dividend funds since the local equity market is saturated with excessive investments.

But what do you think? What are your future investments for 2013? Let us know what you think about these suggestions in the comments below.

 

Allen Rey is a financial writer. He contributes write ups to websites and blogs helping people with financial concerns.

 

This topic and others like it will be discussed at the Asset Allocation Summit Middle East 2013. Click here to download the brochure.

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