Investment Articles

The investment performance of the agriculture sector can be monitored via a number of devices and measures that track the performance of traditional investment assets such as quoted equities, as well as a range of measures that reflect price movements in alternative investment assets within the agriculture space such as farmland.

In reality, the agriculture sector as a whole relies on a combination of demand for its products, weighed against agricultural productivity. When demand for food, livestock feed and biofuels is high then soft-commodity prices rise, as is also the case when poor productivity creates the same widening of the gap between supply and demand. On the other hand, if demand falls back, or bumper harvests create an oversupply of produce, prices fall.

If one is able to gain an understanding of current productivity and demand dynamics, then one is best able to predict the true performance of the sector as a whole.

The performance of agricultural equities alone – as measured by agricultural indices – does not truly reflect the state of fundamentals that support the sector. In many cases, individual issues that affect specific companies can either boost or lessen demand for the stock resulting in movement in the stock price regardless of the performance of the sector as a whole.

Indeed, many consider that the most efficient method of capturing financial gains resultant of the boom in demand for commodities from a population that is growing exponentially is to acquire farmland as an investment. The value of farmland is driven at the most fundamental level by the net revenue earning capability of the individual asset in question. As an example; a one hectare lot capable of generating a net annual income after costs of £1,000, will be worth more to a Farmer than a similar plot capable of earning only £500.

Farmland values are recorded by different indices in different regions. In the U.S. the National Council of Real Estate Investment Fiduciaries (NCREIF) records the quarterly investment performance of farmland. In the UK the Land Registry offers the most accurate picture, although anecdotal evidence from estate agents such as Knight Frank offer some insight, although on a very broad, national basis.

Agricultural equity indices include Standard and Poors GSCI Agriculture Index; S-Network ITG Agriculture Index; Dow Jones-UBS Commodity Index and Société Générale Index Global Agriculture, all of which provide a different viewpoint as they measure a different set of equities or commodities and use different weightings.

Overall, agriculture investments can best be assessed individually, and conclusions drawn as to the potential for each project as a standalone entity, be it an equity investments or acquisition of tangible assets. Investing in any business should not be simply because it operates in a particular sector, farmland should not just be bought simply for its agricultural status, and alternative investments are not going to be profitable just because they are alternative.

DGC Asset Management are an alternative investment consultancy providing Investors with research, due diligence and select opportunities to participate in the acquisition and development of productive, income producing agricultural property and renewable energy assets.

What the Past Teaches Us?

When you look at the last 12 years there are certain truths that have been revealed and replaced former truths. Let’s begin with some of the former truths, first of all, over the past several decades one of the most talked about strategies was to Buy and Hold. This essentially meant that with real estate and with global stock markets particularly in the US and Europe, one would just buy a stock or real estate property that had a good balance sheet, a unique product base and room to grow and hold it for years until eventually realizing gains. From the 1940s to about 1999 the buy and hold formula worked extremely well with stocks and real estate and helped to build exponential wealth around the world. However with technology and globalization there also were “market bubbles” that formed particularly in stocks and real estate. The first big market shocking bubble was the tech bubble that burst at the end of the 90’s with wall street building up lots of Silicon valley stocks artificially and eventually there was a huge pull back as it was learned these companies were not as solid as was once thought. A couple years later in 2001 the 9/11 Terrorist attacks happened which again hurt stocks, nevertheless, the stock market and real estate market in particular began a strong value increase that was later seen to have been very superficial and not having a base as companies and consumers took on huge amounts of debt that had no possibility of ever being completely paid back and as such the real estate bubble and stock market bubble popped in 2008 and 2009 and sent recessionary shock waves throughout the planet. Although it is said that the recession is past, with commodity price increases that have affected food and fuel prices most of the population still feels like it is in a recession, or at the very least is not growing their income and net worth. So as you review the past 12 years and the events that have shaped our current economic situation it is difficult if not impossible to have confident in these old strategies of Buy and Hold and the now false truth that stocks and real estate will continuously increase in value.

Where Can You Capitalize in the Future

So as the realization that real estate and the global stock market have not led to positive returns overall over the past 12 years we must look to other alternative investments like Forex. One of the unique factors surrounding Forex is that whether the US Dollar is rising or decreasing in value versus the major world currencies like the Euro, Pound, Franc, Yen, or Australian or Canadian Dollar you can make money buying and selling the US Dollar. In other words it is possible to make money in an up or down market and best of all whether stocks or real estate values go up or down you can make money in any of those economic situations with Foreign Currency trade. That being the case you need to understand more about the unique features of Forex to take advantage of this market. Typically with mutual funds, Cd’s, bonds, and other investments you are locked in to those investments without the possibility of cashing out of them quickly, in fact it can take months to get your cash out of those investments and let’s not even talk about real estate which can sometimes take years in this current market to be able to get your cash out of the investment so how is Forex different? Well with Forex you have the freedom to withdraw all of your cash within usually a business day or two and have your funds back in your account. This is extremely beneficial in the case of an emergency. You basically can trade Forex one of two ways, first of all you can have a professional Forex Trading firm manage your account for you with any of their proven strategies and programs, secondly, you can try to trade Forex yourself. If you can dedicate several hours per week to develop your own trading strategies and take a few months to pass through some learning curves then trading yourself is a feasible options, however, if you cannot then you need to search for a Forex Trading firm with a solid performance history. Other investments that provide options similar to Forex are Futures and commodities which provide similar features to Forex. In any case you should at least diversify a portion of your portfolio with these asset groups.

Felipe Clark is a Forex Educational and Strategy Professional, providing free Forex education and has with his team researched and discovered multiple, profitable Forex trading programs via Licensed Trading firms, automated strategies, and Professional Forex Education for new Traders. http://www.4xeducation.com/make-money-in-forex

Newspaper headlines of late are quick to detail what little sign of national economic stability they can; some job growth here or a sign of stock market recovery there. And while it may be true that the S&P 500 is up 77 percent from the lows of March 2009-especially good for big-time stock market gamblers-median household incomes are falling at faster rates during this so-called “recovery period,” than they were during the actual recession years. As you can see from the chart below since the beginning of 2009 the median income has dropped sharply while unemployment rises significantly.

In the meantime, the National Association of Realtors (NRA), in addition to providing evidence of continued decline in home sales, also reported a record-high affordability index, which when taken together simply do not add up. How are homes more affordable when the median income continues to decline? Another example of how the media, along with agencies like the National Association of Realtors try to make things look better than they are. Low consumer confidence and tight lending policies by the banks pose definite difficulties, however there is more to be gained than lost as the cyclical nature of the economy will not provide such optimal investment opportunities for long. Now is the perfect time to start to invest in real estate as rates are low and you can make a great return on your money due to cash flow.

There are also great opportunities to purchase property with built-in equity as the banks continue to liquidate their inventory. Taking control of your future is more important now than it has ever been. As median incomes continue to decline the middle class will be pushed into poverty IF they do not do something about it. There are plenty of available resources and alternative investments the middle class can make right now but education is the key. Unfortunately the media is controlled by stock market advertising dollars which control the education base of the American public. Now is time to get educated about alternative investments instead of putting money in the stock market where all one has is hope the values will continue to climb, which is highly unlikely in the current volatile economic times. Stop hoping and enact an investment strategy that works. Stop investing for capital gains and invest in cash flow. A cash flow investor can weather economic instability much more than capital gain investors.

Owens Consulting Group founder Mathew Owens is a California licensed CPA and a full time real estate investor. He has completed over 100 transactions in the past three years, representing approximately $10 million in real estate, most of which has been sold to cash flow investors. He does multiple live educational events and online webinars. Find out more info about him and his blogs at http://www.ocgproperties.com

In the current global climate, defined by low interest rates; high inflation; volatile investment markets; and poor short term visibility, investors are seeking out alternative investments that generate growth and income that does not depend on traditional market performance.

As such, much attention has been focussed on timber investments as a tool to preserve capital, hedge inflation and generate superior income in a low-risk environment.

Institutional Investors such as pension funds, university endowments and hedge funds have long known the benefits of investing in timber assets, with many such as the Yale University Endowment Fund holding 28 per cent of their investment portfolio in real-asset alternative investments including tropical forestry investments and farmland.

Timber investments are seen as generating non-correlative investment returns due to the fact that the majority of revenues is sourced from the biological growth of the tree, with only a small percentage of return attributed to timber price growth or land value appreciation. One credible university study found that over 60 per cent of returns from forestry investments can be attributed to the ‘biological hedge’.

Demand for timber products remains strong, and rises roughly in line with population expansion, a factor compounded by economic expansion in developing nations leading to a n increase in consumption of timber products per capita as new homes and other infrastructure in developed.

Currently, around 30 per cent of global timber supplies are sourced from illegal logging, and a further 40 per cent form unsustainable sources. The future demand dynamics then indicates that timber investments are likely to continue to outperform other assets such as equities, as they have for the past 30 years.

Taking a very broad view, forestry investment returns can be enhanced and potential downside risk substantially reduced through the application of strategic species and location selection, combined with experienced forestry management to create a sustainable and profitable investment model.

Broadly speaking, the faster a tree grows into commercially viable timber, the greater the return on investment, so selecting fast-growing tropical timber species is the first step in consolidating profitable forestry investments. Bamboo is one example of a timber species with great potential as a subject of sustainable forestry investments due to the fact that the rate of biological growth is so rapid as to ensure a commercially viable, harvestable timber stand within 4 years of planting.

Other features to take into account to maximise forestry investment returns are sustainable plantations managements, suitable site selection and investing in upstream products developments, allowing timber growers to process their raw materials and sell value-added timber products such as boards and other processed wood products.

Investors interesting in harnessing the characteristics of forestry investments for their own portfolio should be encouraged to seek advice from an independent third party with experience in identifying and delivering successful forestry investment projects.

DGC Asset Management provide independent advice for Investors interested in direct forestry investments.

Small-scale fine wine investments are increasingly popular, especially in the UK. What was once a select investment opportunity, limited to wealthy connoisseurs, has now become much more accessible. The Internet, the growing number of investment trusts, and the greater amount of information about fine wine available have all contributed to bringing wine investments closer to mainstream. Yet investing in fine wine is not without its risks. Here’s some food for thought.

Great Wines in Great Years Are Most Rewarding

Not all fine wines can make you rich. Truth be told, most bottles, even well-know ones, bring moderate revenues, and only after they reach maturity (at least a few years). Only the top bottles from prestigious vineyards bring fantastic profits, and these are hard to get. The safest bet is to invest with care in lesser fine wines, and to be realistic. And don’t forget that you can always drink your wine instead of selling it.

Buying Wine Before It’s Bottled Is Risky

Many fine wine investments these days entail that you buy wine before it’s bottled. This is a common practice especially when it comes to Bordeaux wines. Know as ‘futures’ by insiders, this type of investing riskier, especially for starters. There are many variables involved here, such as final quality, demand, market price fluctuations, and so on, all of which need to be carefully considered. This is not too say that ‘futures’ are to be avoided; not at all, they can be the most lucrative investments. Yet they must be indulged in with great care.

It May Be Trickier With New World Vintages

American fine wine investments may be particularly challenging, because the vintage makers in the US are not as firmly established as those in Europe. There are famous California red producers, such as Opus One and Screaming Eagle, yet the prices are much more fluctuating than in the Old World. The chief factor that sets wine price in the US is not wine maker prestige, but demand. For a UK investor it can be harder to keep up with all the developments of the US market. There always, of course, exceptions.

Wine Lovers Are Less Likely to Regret Their Investment

Finally, you have to keep in mind that fine wine investments, just like any other types of investments, can always fail to bring you the expected returns. In such a scenario, are you ready to put your worries aside and enjoy a glass of fine wine, from the bottle in which you invested yourself? If not, then you may be better off considering other types of investments, such as those in contemporary art, silver, or gold.

If you are looking for best alternative investments, experts at Compare the Financial Markets will help provide valuable assistance.

In today’s economy investing is a risky business and especially if you’re using stocks or bonds. The value of these can change on a daily basis and leave you with a loss. Alternative investments are an alternative way to invest and thus are proving to be very popular in recent times. The change of value is usually a lot less drastic than normal stocks and they can be great to have in uncertain times.

Alternative investments are any sort of investment that has a low correlation with stocks, bonds and cash. A couple of examples would be natural gas and teak wood. To a small investor starting out these commodities will be widely available and would be a great starting point if you’re seriously considering an alternative investment. Although the return may not be as great as an ever changing stock, they can be a fantastic medium term solution to your investment portfolio.

One of the very first known alternative investments was rice back in the 1400’s. It was used as a commodity and was traded for agricultural products or receipts. In the 1600’s futures contracts were developed and ensured that parties would agree to deliver and pay for goods in the future that were actually agreed upon in the present. This was helped to soften the short troubles with supply and demand. In the 1800’s the first form of pooled investments was invented. It’s similar to today mutual funds and is the precursor to hedge funds. Today we have many different currencies which all trade at different prices. The most recent development was in 2007 where the first mutual fund has exposure to the managed futures market.

Nowadays in 2011 we have access to many different investments. Any market you can think of you can invest in. While hedge funds and venture capital are deemed to be alternative investments some don’t consider it to be a true alternative and more of a diversification strategy. One of the truest alternative investments you can make is in natural commodities. Commodities are based on how the consumers are using them and how they are being transformed for other uses. For example commodities like teak wood are in demand due to deforestation and the need for them in flooring and construction. Due to major reforestation plans in Brazil and a growing demand it’s likely to see this commodity rise slowly over the years. This investment also won’t be affected that much by the economy as the demand to build wooden floors and have it used will still be there.

However some issues with alternative markets is that it’s hard to tell the true value of the asset as there are less reports freely available. Since many alternative investments may be new (such as renewable energy sources) it may be a bit harder to look at the historical data and see how they have performed in the past.

For investors diversification is key in tough economic times and can lead to some great success.

Select Global is a market leader in alternative investments and provides investors with many opportunities to invest in eco friendly commodities. http://www.select-global.com

Alternative Investment Lessons – Buy Physical Assets

In the current climate, investors are seeking alternatives to traditional investment assets, hoping to preserve capital, avoid the ravages of volatile equity markets, and generate investment returns that are not wholly dependent on the performance of the wider financial markets.

Physical assets are proving most popular with investors, items that retain a tangible value, rather than paper-based investments that can ultimately reduce in value to zero, despite the value of any underlying assets. Gold is the prime example. Whenever the stock market fall substantially, investors sell shares and buy gold. The resulting spike in demand for what is a finite asset drives up the price, creating returns for investors.

Other alternative investment assets that are becoming increasingly popular also rely on supply and demand for their capital value, but where demand is guaranteed. Farmland is a good example; there is a finite stock of suitable arable land, most of which is already being used, yet the population is not only growing in size, but also in consumption per capita of food and energy. This means that the product of farmland -crops – will continue to rise in price as demand outweighs supply. This creates an income stream with a positive correlation to population growth. Also, as the land earns more money it too becomes a more valuable assets, so farmland rises in value faster than the rate of inflation providing a good capital preserve as well as income.

Farmland as an alternative investment now forms part of the investment portfolios of a number of major pension funds, hedge funds, sovereign wealth funds and university endowments. Long-term investors that can afford to hold the asset for some time are well positioned to preserve and grow capital whilst also generating income.

Investing in real assets like farmland protects the investor from short term market volatility, as these kind of alternative investment assets have a real use, they hold real value. Some investor attempt to harness this growth in global consumption by investing in agribusinesses through the equity markets, but whilst this method of investment will capture broad sector-wide growth, the value of even great companies falls when the market dips or crashes.

Another alternative investment asset that relies on demand for essential commodities is timber. Investors that purchase commercial woodland, earn revenue from timber sales at harvest, so returns are dependent on the growth of trees, rather than financial markets. Also, trees retain their value, and grow into bigger, more valuable trees every year.

Forestry investments are similar to farmland investments in a number of respects; in the first instance, they benefit from increasing demand and limited supply, they retain value when the markets crash, and investing in timber companies does not provide the same shelter as investing in the physical asset.

But timber is unique in one respect, and that is that not only do the trees grow bigger giving more timber to sell, they also grow in value as timber prices increase in line with, or faster than the rate of inflation.

There are all kinds of alternative investments, but many share very similar characteristics as laid out in this article. They rely on supply and demand, rarer items command higher prices, and their performance has a low or negative correlation to traditional assets like stock and shares. The same can be said for investing in fine wine, art or collectibles, all of which are also becoming more and more popular as alternative investments.

Download the Alternative Investment Report at the DGC Asset Management website.

David Garner is Partner at boutique alternative investment boutique DGC Asset Management Limited.

Investors looking to diversify their portfolios and insure their wealth against the ravages of volatility in traditional markets, will most likely have come across a range forestry investments, promising to generate superior inflation-adjusted and risk-adjusted returns for the long-term investor.

But how have timber investments performed? And how does the smaller investor participate in this interesting alternative investment asset class?

Firstly let’s look at the past performance of forestry investments, as measured by one of the main timber investment indices, the NCREIF Timberland Index; according to this basic measure of investment returns in the sector, this asset class outperformed the S&P500 by some 37 per cent in the 20 years between 1987 and 2007. When stocks delivered average annual returns of 11.5 per cent, forestry investments returned 15.8 per cent.

At the same time, returns from investing in timberland and woodlands have been proven to display a much lower volatility, an attractive characteristic for today’s investor.

Previously, the majority of investment returns from forestry investments have been mopped up by larger, institutional investors such as pension funds, insurance companies and university endowments, who have collectively placed over $40 billion into timber investments in the past decade.

So on to the second question; how do smaller investors participate in this kind of alternative investment?

According to a study by Professor John Caulfield of the University of Georgia, returns from forestry investments are three-fold;

An increase in timber volume (biological growth of trees), which accounts for some 61 per cent of return on investment.
Land price appreciation, accounting for only 6 per cent of future returns.
Increase in timber prices per unit, delivering the final 33 per cent of investment returns for timber land owners.

So the best way to harness the performance of timber investments is to take ownership of trees, either directly, or through one of the array of forestry investment funds or other structures.

Timber REITs

One way for smaller investor to participate in timber investments is through a Real Estate Investment Trust (REIT). These investment structures are like funds, in that investors can buy and sell shares in the trust on an exchange, the REIT acquires and manages timber investment properties, but unlike normal companies must pay out 90 per cent of their earnings to investors through dividends.

Some examples of Timber REITs are:

Plum Creek Timber is the largest private owner of timberland in the U.S. and the largest timber REIT with a market cap of about $5.6 billion, many investors have chosen this as their route into forestry investments.

Potlatch is also a timber investment REIT while

Rayonier generates about a 30 per cent of its REIT earnings from timber.

Weyerhaeuser has disposed of its paper and packaging businesses and will convert to a REIT by year end.

The Wells Timberland REIT is not publicly listed but may be available for purchase through Wells Real Estate Funds.

Another way for smaller investors to add forestry investments to their portfolios is to buy Exchange Traded Funds that attempt to track the performance of timber returns. This is less direct than owing timberland, or investing in a timber REIT, as the ETF may also invest in shares in companies involved in the timber supply chain including processors and distributors. This means that investing in forestry through ETFs exposes the investor to some of the volatility of equity markets.

The Guggenheim Timber ETF owns about 25 stocks and REITs involved in the global timber and paper products industry with a 30% weighting to U.S. companies.

The S&P Global Timber & Forestry Index Fund holds 23 securities and is 47 per cent invested in the U.S.

Timber Investment Management Organisations (TIMO)

Those with more capital to spare can participate in forestry investments through TIMOs, although the majority of these investment specialists require a minimum investment of $1 million to $5 million and a commitment to tie up funds for up to 15 years. TIMOs essentially trade timber land assets, acquiring suitable properties, managing them to maximise returns for investors, the disposing of them and distributing profits to shareholders.

Many experts believe that the active management style of TIMOs ensures that they can be more reactive to market conditions than REITs, and therefore don’t tend to fall and rise in line with the market quite as much.

Direct Forestry Investments

Those with access to sufficient capital and the appropriate expert advice can invest in physical properties. Commercial timber plantations are complex operations that require skill, knowledge and expertise to manage effectively and maximise returns whilst lowering risk.

For armchair investors, or those with less capital to spare, many companies offer investors the opportunity to purchase or lease a small portion or plot within a larger, professionally managed timber plantation. Investors normally take ownership of their plot and trees via leasehold, whilst the timber investment company plants, manages and often harvest the trees on behalf of the investor.

Options for investors range from species to species and region to region, with current opportunities in Brazil, Panama, Costa Rica, Germany, Nicaragua and other, more exotic locations like Fiji.

Investors should be wary as many of these direct forestry investments are frontloaded with enormous commissions for salesmen and promoters, with many offering ‘agents’ up to 30 per cent commission for the sale of plots to investors, and in many cases, no due diligence even exits.

In some cases, the Author has seen forestry investment plots in Brazil packaged and sold to investors for over £100,000 per hectare. Investor should seek advice from an independent consultant with experience of this alternative investment asset class, and who is able to present a complete suite of due diligence material, including an independent valuation of the forestry investment property on offer.

Summary

Investors choose forestry investments due to their effect as an inflation hedge, and their ability to generate non-correlated return on investment in the long-term.

Performance of the asset class is driven by demand for timber, weighed against global supplies, and in the long-term we are using timber at a faster pace than we can grow it, making timber investments an attractive asset class for the investor seeking stable, long-term capital appreciation within their investment portfolio.

Investors looking into which type of forestry investment is right for them should consult an adviser that can demonstrate experience and expertise within the sector.

DGC Asset Management Limited is an alternative investments business, identifying opportunities to invest in non-correlated assets.

David Garner is Partner DGC Asset Management Limited.

During the economic crisis of the past decade, markets and industries crashed and hundreds of companies and millions of people were caught with their pants down. This ordeal has taught everyone the value of security during uncertain times. One of the surest ways to buffer yourself from economic crunches is by making sound investments. While there are traditional investment strategies available to first-time investors, alternative investments are rapidly gaining momentum, and for good reason.

Alternative Investments: The Basics

Alternative investments refer to investment strategies that go beyond traditional investments like stocks, bonds, cash, or property. Popular financial assets in the alternative investment category are:

1. Hedge Funds

2. Private Equities

3. Financial Derivatives

4. Venture Capital

5.Commodities

They also include several tangible assets including, but not limited to, the following:

1. Wine

2.Antiques

3. Stamps

4. Art

5. Coins

Characteristics of Alternative Investments

Unlike traditional investment strategies, alternative investments are not direct fixed-income or equity claim on the assets of an issuing body. They are complex in nature, so most of these assets are held by accredited, high net-worth individuals. They also tend to lack liquidity and have a low correlation to traditional financial investments such as shares of stock in a company. This low correlation adds to its appeal, especially with investors who are looking to diversify their investment portfolio (the low correlation coefficient will be discussed in depth in a later section).

Also, compared with more common investments like mutual funds, alternative investments have higher minimum investment requirements and fee structures. The cost of purchase and sale is relatively high. In addition, they are subject to less regulation. While this may be good on one hand, it also has the effect of limiting opportunities to publish verifiable performance data. Hence, historical data on risk and returns may be limited. This data could be useful in promoting an alternative investment to potential investors.

Because current market values of some forms of assets are difficult to determine at the least, it is imperative for investors looking to invest in alternative investments to conduct proper due diligence. This especially applies to tangible assets like artworks and wine.

Some investors consider alternative investments as a good means to diversify their portfolio, thereby reducing overall investment risk. However, this is not the only reason why more and more investors are now looking into expanding their financial prospects via alternative channels.

The Appeal of Alternative Investments: Low Correlation, Absolute Return

Although there are a number of alternative assets presently being offered in the marketplace, a common characteristic among these numerous options is their low correlation coefficients with both fixed income and equities. Low correlation is considered important when choosing assets for inclusion in a portfolio, primarily because assets that are relatively uncorrelated with both bonds and stocks tend to have minimal exposure to systematic market risk factors. Absolute Return Strategies – strategies that seek a low correlation to systematic risks in the market, make it their objective to attain relative independence from the underlying equity or fixed-income market benchmarks’ overall performance.

Absolute return does not come without its challenges, however. There are potential constraints on the upside. To illustrate, when broader stock markets are picking up, investors with low-correlation alternatives may see their portfolios performing weaker in relation to those with traditional assets. This somehow implies that absolute returns can be maximized in negative market climates and tend to underperform during positive economic climates.

The Economic Atmosphere for Alternative Investments

It would not be an understatement to say that alternative investments were, for the longest time, reserved mostly to high net-worth investors. The broader retail market finds the field of alternative investments difficult to penetrate because of reasons mentioned earlier in this article:

- High minimum investment sizes;

- High minimum fee structures; and

- Assets with no liquidity.

Recent years show a change – an evolution – in the economic atmosphere, where alternative investments are concerned. Progress in global financial markets has developed and provided greater opportunities and a wider range of products through which more investors can enrich their portfolios with alternative assets. Directional alternative assets like commodities, real estate and foreign currencies, as well as hedge strategies like buy-write become accessible to more investors through exchange-traded funds (ETFs), exchange-traded notes (ETNs), and mutual funds.

These options were not available until recently. With increasing entry points into alternative investments, investors now find themselves able to participate in innovative investment approaches that promise increased profits. If alternative investments appeal to you, now would be the best time to start investing in alternative assets.

PublicMining.org is a free resource about the mining industry for the discriminating mining investor.

There are many different philosophies about how to find good investments. Most people in the past have only invested in Mutual Funds or individual stocks. But now, there is a much better alternative than Mutual Funds called Exchange Traded Funds (ETFs) or ETF funds. ETFs will work much better for most retirement investing and investors. The ETFs provide simplicity, trading ease, low entry fees, no penalties or required holding times, better tax advantages, deeper and more targeted selection offerings, and smaller money entry requirements (i.e, ETF funds don’t have minimum buy-entries like $2,500 or much higher). I recommend beginners or self-investors take a serious look at using ETFs for investing because they are simply very good investments.

If you are anxious to start growing your nest egg again or for the first time, then get started the right way by purchasing a list of diversified ETF funds. Make sure to be steady with your monthly contributions to as many positions as you can in order to minimize market downturns and economic recessions over time through cost averaging. Hopefully, the markets and world economies are on the mend and will start their slow climb back up from here. This European debt crisis will pass and scaling in with buys during times of fear and uncertainty will always be rewarding for the patient investor.

It is very important to have balance and diversification in your investment portfolio. Dividing your positions between domestic and world stock market equities with dividends; a variety of bonds; alternative investments; targeted growth equities and sectors; precious metals, commodities, and natural resources; high-yield income; and some real estate should be a good starting point.

A big advantage of using ETF funds for most investors is that very small amounts of money can be used to get started. The important thing is to get back into the market and to be consistent no matter how much money you use or how long it takes for you to build out the entire portfolio.

Start by putting some money into a variety of fairly safe and diversified dividend paying equity ETFs (Exchange Traded Funds). The ones I think are the top ETFs to buy for growth and income are:

1) DVY – IShares Dow Jones Select Dividend Index – invests in select safe and diversified dividend paying companies with a dividend yield around 3.5%. Top 5 Holdings: Lorillard, Inc (LO).; Entergy Corporation (ETR); V.F. Corporation (MCY); CenturyLink, Inc. (CTL).; Chevron Corporation (CVX)

2) SDY – SPDR S&P Dividend – invests in S&P 500 dividend paying companies with a dividend yield around 3.4%. Top 5 Holdings: Pitney Bowes Inc. (PBI); CenturyLink, Inc. (CTL); HCP Inc. (HCP); Consolidated Edison, Inc. (ED); Eli Lilly and Company Common (LLY)

3) VIG – Vanguard Dividend Appreciation – invests in dividend paying companies based on the Mergent Dividend Achievers Select Index with a dividend yield around 2.2%. Top 5 Holdings: Wells Fargo (WFC); Chevron Corp (CVX); McDonald’s Corp (MCD); Pepsico (PEP); Conoco Phillips (COP)

4) DWX – SPDR International Dividend – invests in worldwide list of dividend paying companies with a dividend yield around 6.0%. Top 5 Holdings: Tele2 Ab; Telesp Tel Sao Paulo; ASX Ltd; RWE Ag; OrientO/Seas Intl

5) PID – Powershares Intl Dividend Achievers – invests primarily in international ADRS with a dividend yield around 3.5%. Top 5 Holdings: Partner Comm Co (PTNR); Philippine Long Distance (PHI); Telefonica SA (TEF); Teekay LNG Partners LP (TGP); National Grid PLC (NGG)

ETF funds trade just like stocks so they can be easily bought and sold with any discount broker online and the fees are very small. Start with a small initial investment into each of them and then add money every month or on market weakness while also using the accumulated dividends to buy more over time. It has been shown throughout stock market history that dividends account for over 40% of the total market’s return, that index type funds outperform most money managers, and that reinvesting your dividend proceeds are a sound way to grow your returns.

Investing in times of uncertainty and fear present good buying opportunities if you scale in on market pullbacks. Be patient and invest consistently over time and you will be rewarded with big returns. You will discover that ETFs are very good investments for growing your retirement.

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