Category: Investment

Perhaps you may have noticed recently that the stock market has crashed. Sure it’s sad for the people who invested so heavily in it but perhaps behind it all there are a few expensive lessons to be learned. The first lesson is that the stock market is a great place to invest your money when its hot but should it turn cold, the stock market giveth and the stock market taketh away.

Truly Beautiful Investments to Hold in Your hand

Whats really crazy is the stories that are coming out on the news about people who are committing suicide because they have lost their millions. Is that really what investing is all about or can there be more to life than that? What about investments that you can hold in your hand and truly appreciate whether they go up or down in value.

Always Valuable to Soccer Fans

This is where the signed football shirt truly shines as an investment opportunity for todays soccer fan. A truly special football shirt that a favorite soccer star has actually held in his hand and put his name on. Of course these types of signed football shirts can be bought on a speculative basis but can they ever completely lose their value in the way that so many other investment commodities have recently?

Not Worth Dying Over

Of course not! And that is what makes them such an excellent investment. Do you think those guys would have killed themselves if they were loyal soccer fans that had invested their millions in signed soccer shirts? Hell no! Because for one thing they can never lose their value the way that stocks have and besides, regardless of which way they go in value, they will always be a genuine signed soccer shirt!

Well Worth the Sacrifice

OK. So now you are ready to sell your home and move into a cardboard box, so you can invest your entire net worth in signed soccer shirts and live under a bridge. Thats a wise choice, because for one thing it shows that as a true soccer fan you really do have your priorities in order. The wife and kids can go and move in with her mother. She’ll understand.

Using Prayer as an Investment Tool?!?

However before you begin making your purchases there are a few things that you will need to know. Of course the golden rule about not making emotional investments goes right out the window here, because after all, it is soccer your dealing with. However; with any type of sports memorabilia the idea if you plan on making money is to pick a rising star in his rookie year and pray like hell he doesn’t get injured.

Don’t Get Scammed

However; there is one other golden rule that you will definitely want to invest in signed soccer shirts by. That is that you should only buy a signed soccer shirt from a reputable website. Scouting around the Internet for screaming deals, more often not is only going to leave you holding a counterfeit. For investment purposes, the only option that you should consider is signed football shirts from credible online sources that come with a certificate of authenticity.

There are several factors that have fuelled the student property fire that we find ourselves in today. An increased demand from residential developers, coupled with a shortage of land, means that prices are rising sharply.

Developers and investors interest has been piqued by the increased competition for suitable student housing. Despite the UK undergraduate population reaching record highs in 2013, it is estimated that only around 13% of students have access to purpose built accommodation.

Increased profit margins

Investing in student property is a great way to earn extra money, or to introduce some variety into an investor”s housing portfolio.
Despite increased tuition fees the student accommodation market continues to rise, and competition for the nicest and most convenient locations is fierce.
According to the NUS (National Union of Students), the price of student property has risen 100% over the past ten years.

From an investment stand point this is a very intriguing figure, as rental increases mean more profit.
Especially since the commercial housing market has been somewhat stagnated and unstable during the recession, it is student property that has remained a positive business investment and one of the only property sectors that has reported continual growth.

Tapping into supply and demand

“The typical student property investment is achieving 8% Net Income per annum,” says Arran Kerkvliet, Investment Director at One Touch Property.
Take Liverpool “” one of the North West”s hot spots for university demand “” where 70,000 students come to study every year.

The price of inner-city student property has progressively risen; in 2011 a student pod would be on the market for 42,500, now in 2014 that price has risen to 57,000. This results in a steady increase over three years.
When deciding on an area of the housing market to invest, it is noted that student property investment is one of the safest commercial ventures that you can participate in.

Successful long term property investment is achieved by intertwining rental income and capital growth. Student housing accomplishes this, and it can be recognised by the general additional equity that the accommodation provides, as well as the property steadily rising in value.

Is it all good news?

With 19,000 more undergraduates applying to university than last year, the student property market may seem like a sure thing,
The problems that some landlords tend to run into are general maintenance costs, as student properties do require a fair amount of redecoration and upgrading.

Also, any newly built accommodation that is closer to the university will have an effect an investor”s rental income, meaning that typically prices can go down as well as up.
This fluctuation can be realised and managed by employing an experienced property broker, especially one that specialises in student housing.
One Touch Property aim to connect developers and investors with locations that have the most opportunity for growth. Areas like Brighton and Leicester, which are full of students and yet are undeveloped when it comes to suitable student accommodation to house them all.

Growth on investment

There are several steps an investor can take to ensure that their student property investment continues to give then the best return.
Many landlords choose tenants that are students from overseas and postgraduates “” mainly because they rent the property for the whole year. Some property-owners do still charge rent for 52 weeks, even when the house is empty and the students have returned home.

It is imperative to remember that the closer that the student investment property is to the university, the higher and more secure any long term rent will be. This is also ideal for the preservation of capital, as it would be difficult to purchase property that is any closer in proximity.

This ensures that even if competing units were to become available, they would be further away from the university “” therefore increasing the probability that the student property would be the first one to be rented and therefore increasing the probability of capital growth.

Energy Drinks and New Age Beverages are the hot topics not only in products and sales or in the beverage industry but also in the Investment Community.

I’m seeing many new companies and new products every single day; and those are the ones that call me. Imagine all the ones all over the world.

Vitamin Water sold for a few Billion dollars, 4.1 to be precise. Now everyone is jumping into the industry.1 Billion Dollars, individuals, investors and companies want to go into the “New Age Beverages”.

So what exactly are New Age Beverages? New Age Beverages is a new way of seeing “modern beverages” including functional beverages and fashionable drinks. This new “category” is growing and changing. Some time ago you only found Red Bull, Monster, Rockstar and maybe Vitaminwater as part of New Age Beverage. Now it has gone global, and crazy. Now the category has evolved and you can include enhanced water, tea’s, diet drinks, iced coffee and really, any new drink. Every beverage company want’s to be associated with the “New Age” category because not just because it’s sexier but because the category is growing quicker and investors are looking at it up close.

You have to realize that Vitamin Water is not the first company to get big cash for their brand. There are beverage companies being funded every day, and more being bought and sold from large companies. Use the “big boys” as examples. Most of them started out with very small companies and a big idea.

You see many companies in the news being funded, many new entrepreneurs, investors, actors, signers, sports stars launching products.

Other companies like Reeds Beverage, Who’s Your Daddy, Jones Soda and Hensen with Monster Energy Drink access funding through the public markets. These and many others are public companies traded in the New York Stock Exchange, the NASDAQ or the OTC (Over the Counter).

My company gets hundreds of call from business people and investment companies looking to eather start or invest in New Age Beverages. I get hundreds of calls every month from Energy Drink or other beverage companies or just people wanting to start their beverage. The industry is growing and the category is growing even faster.

Why are these drinks growing at 50% per year or more? Why do we see so many waters, energy drinks, hydrating products, etc. on the market today? The answer is easy. Consumers are demanding more and more drinks. People now idendify with their drinks. They are fashion accesories, they are lifestile accesories. They want organic drinks, sugary drinks, healthy drinks and every type of drink to fit their personality, and style.

Why is everyone going into this new segment? Simple, there is money to be made. This is one of the characteristics that are shared all New Age Beverages, they all have high profit margins. How high are the margins? Well, you can make up to $24 Gross Profit per case. Yes, this is for one case. Imagine selling just one truckload of beverages or around 1,600 cases with this profit. Could you see selling truckloads and truckloads per month!

++Some advice before you start your venture:++

-Don’t just focus on the drink, focus on the whole package (I get a lot of phone calls and emails telling me they have a better tasting drink than Rockstar, Red Bull and Monster Energy Drink).

Don’t forget, get distribution first and promotion second. Don’t fall into spending money with no sales. What is the No. mistake I hear Energy Drink companies make? Promotions before Distribution. Remember, you have to concentrate on your Distributor and Retail Packages. Sell first, then push product off the shelves.

-Learn your Financials. Figure out how much it takes to start and sell your new drink before you go and produce 5,000 cases.

Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

In today’s complex financial markets, you have an impressive array of investment vehicles from which to select. Each investment also carries some risks, making it important to choose wisely if you are selecting just one.

The good news is that there’s no rule that says you must stick with only one type of investment. In fact, you can potentially lower your investment risk and increase your chances of meeting your investment goals by practicing “asset allocation.”

Asset Allocation Can Work

For instance, at age 25 you may decide to invest with the goal of retiring in comfort within 40 years. Most likely, your investment goal is to achieve as much growth as possible growth that will outpace inflation substantially. In aiming to reach this goal, you may allocate 70% of your assets into aggressive growth stocks, 20% into bonds, and 10% into money market instruments. You have years to ride out the wide fluctuations that come with stocks, but at the same time, you potentially lower your risk with your bond and money market holdings.

Because your goals and circumstances are unique, you may want to talk with an investment advisor who can help you tailor an allocation strategy for your needs. Generally, your asset allocation will change as you reach different stages in your life, as your investment goals also change along with these shifts in lifestyle.

If you have been investing aggressively for retirement for more than 20 years and are now less than 10 years from retiring, protecting what your investment may have earned from market ups and downs may become more important. In this case you may want to gradually shift some of your stock allocation into your bond and money market holdings. Keep in mind, however, that many financial experts recommend that stocks be considered for every portfolio to maintain growth potential.

A Simple Process, Some Dramatic Potential Results

Asset allocation is a simple concept, yet vital to long-term investment success. In fact, a landmark study cited in Financial Analysts Journal shows that about 90% of the variability of average total returns earned by balanced mutual funds and pension plans over time was the result of asset allocation policy.3 For many individual investors, the asset allocation decision amounts to choosing what types of mutual funds to invest in and the amount to invest in each type of fund. Others may want to add individual securities to this mix after exploring their investment options.

Regardless of the asset allocation strategy you choose and the investments you select, keep in mind that a well-crafted plan of action over the long term can help you weather all sorts of changing market conditions as you aim to meet your investment goal(s).

Points to Remember

1.Asset allocation is the way in which you spread your investment portfolio among different asset classes, such as stocks and stock mutual funds, bonds, and bond mutual funds.

2.When prices of different types of assets do not move in tandem, combining these investments in a portfolio can help reduce the variability of returns, commonly referred to as “market risk.”

3.Mutual funds are pools of securities, usually offering diversification within a single asset class. Some mutual funds may include several asset classes.

4.The asset allocation that is right for you depends on your investment time frame, goals, and tolerance for risk.

5.As your investment time frame and goals change, so might your asset allocation. Many financial experts suggest reevaluating your asset allocation periodically or whenever you experience a milestone event in your life such as marriage, the birth of a child, or retirement.

Want to know more?

Hypo Venture Capital is an independent investment advisory firm which focuses on global equities and options markets. Our analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best possible investment decisions. All views, comments, statements and opinions are of the authors. For more information go to www.hypovc.com

A well-planned investment strategy is essential before having any investment decisions. A business strategy is generally based upon long run period. Formation of business strategy largely dependent upon the factors such as long-term goals and risk on the investment.
As the return on investment is not always clear, so the investors prepare the strategy so as to face the ongoing challenges in investment. A balanced investment strategy is generally required in the process of investment, which possesses long time period and some risk tolerance.
In the case, when a strategy is aggressive the chance of attaining a higher goal is higher. An efficient strategy can be obtained from portfolio theory, which shows good estimates on risk and return.
Strathclyde Associates Investment Guide: Investment Strategy is usually considered to be more of a branch of finance than economics. It is defined as set of rules, a definite behavior or procedure guiding an investor to choose his investment portfolio. For example, investing in mutual funds has recently emerged as a very favorable investment strategy.
An investment strategy is centered on a risk-return tradeoff for a potential investor. High return investment instruments such as real estate and mutual funds usually have more risks associated with it than low return-low risk investment opportunities. Return on investment can be calculated on past or current investment or on the estimated return on future investment.
Symbolically, it can be expressed as: Vf/Vi -1 where Vf denotes final investment value and Vi is the initial investment value. (“f” and “i” should be noted as subscripts)
Strathclyde Associates Investment Guide: Return on investment (ROI) is profitable when Vf/Vi-1>0 and the investment is deemed to be unprofitable when the value of final investment is less than that of the initial investment. ROI is calculated to be 1 or 100% when the value of the final investment is twice the value of the initial investment.
Types of investment strategies can be defined as follows: A passive investment strategy attempted to minimize transaction costs.
An active investment strategy guide used to maximize returns based on moves such as proper market timing. This usually mean, “buying in the lows and selling in the highs” or buying investment instruments when they are cheap and selling them off when their price appreciates. This strategy, however, is not very beneficial for small time investors.

Small time investors can adopt the buy and hold investment strategy to invest in equities, which although volatile in nature, give favorable long run returns. Investing in equity markets for small time investors is associated with the investors holding on for very long periods. In the case of real estate, the holding period extends the lifespan of the mortgage. Notably, in case of this strategy, indexing or buying a small proportion of all the shares in market index or a mutual fund is a purely passive variant of the above strategy.
The strategy of value investing, a classic investment strategy propagated by Benjamin Graham simply concentrates on the strategy that an investor buys shares of a company as if he was buying off the whole company without paying any attention to the stock market scenario or any exterior conditions such as the political climate. At the end of the day, if he can buy the stock at less than that its actual future worth to the buyer, the person is said to have discovered a “value investment.”
Investment strategies can also denote the investment strategies a national or federal government should follow to bring about economic growth in a country. This can only be achieved by domestic investment as well as significant FDI (Foreign Direct Investment) flows to particular sectors of countries, especially the less developed ones of Asia and Africa.
In case of India, infrastructural problems, excessive government intervention, rigid labor laws and corruption are stifling the flow of FDI in the critical sectors. Less developed countries such as those in the Asia- Pacific region and Africa can bring about much needed development in these economies.
An investment strategy in mutual funds is probably the best bet for a profitable investment. Mutual funds is defined as a pool of money supplied by different investors and in turn used by the mutual fund company to invest in various assets such as stocks and bonds. However, a detailed research has to be conducted for choosing the mutual fund companies and only those should be considered which have a professional investment manger. This will ensure that the funds get channeled towards the right investments. This also applies for investing in stock markets where a decision to invest should follow a through research about the past and current trends of the stock prices and their Net Asset Values (NAV). Analyses from market researchers about the predicted future trends should also be considered otherwise gains from capital appreciation; capital gain distribution (in case of mutual funds) and dividends might not be realized.
Lastly, investment strategies leading to green investments or investments in renewable sources of energy will be the next big thing in the investment spectrum. From Economy Watch. Economy, Investment & Finance Reports.

Strathclyde Associates is a full service brokerage firm with many years experience in providing a wide array of services globally to a vast group of clients that include private individuals, financial institutions, governments and corporations.