Where’s the Dramamine?
Investors have been on a roller coaster this year and they don’t have much to show for it. The S&P 500 Index is still sitting on a loss for the year and it doesn’t look like the Fed is going to budge on interest rates until sometime in 2016 — not much hope of getting income from that sector.
Europe is looking a bit shaky between Greece’s issues and the surge of immigrants flooding the area in search of refuge. China is making everyone nervous.
You reach a point where you just want to say, “Enough is enough!” You want at least one investment that you feel doesn’t need to be constantly babysat and isn’t likely to blow up with the next crisis.
Well, I’ve got three suggestions for investment opportunities that get you away from the volatility of the stock market…
Escape the Stock Market Roller Coaster
Geoff Anandappa of Stanley Gibbons took Total Wealth Symposium attendees away from Swiss banks and the volatility of various stock markets by focusing on a unique asset class that is supported by billions of collectors worldwide. Collectibles such as rare coins, stamps, limited-edition print arts and first-edition books have largely been ignored as an asset class by investors. Collectibles, however, offer a way to diversify your assets. And due to the fact that most of these assets are held by “strong hands” — collectors holding the objects for the love and prestige of owning these items rather than for their price-growth potential — they won’t face a sudden sell-off simply because the market turns volatile.
In addition, this asset class doesn’t suffer the kind of volatility shocks that are seen in the stock market, because the majority of collectors don’t rush out to unload their collections due to an economic meltdown.
Geoff walked attendees through the risks that investors suffer, such as high dealer margins and auction commissions, fakes and forgeries, and the lack of liquidity. The holding period is usually medium to long term. It can take weeks or even a few months to find a buyer for an item when you want to sell it, especially if you wish to get a good price.
He also mentioned that it is key to have an exit plan if you wish to include collectibles as part of your portfolio. Knowing how you’re going to sell your items after they’ve appreciated in price can help you retain more of your profit, rather than paying out far too much in dealer fees.
To learn more about how to take advantage of Stanley Gibbons’ expertise and their flexible plan, check out our Total Wealth Symposium Defense Kit to see all of Geoff’s presentation.
More Than Stocks and Bonds
When it comes to growing your wealth, many investment opportunities are focused on the stock market whether in the U.S. or offshore, but there are other options to create steady income and price appreciation. Geoff Anandappa gave a great talk on collectibles, while Juan Federico Fischer presented other options — real estate and farmland in Uruguay.
Uruguay was named country of the year by The Economist just a few years ago and this undiscovered gem is becoming a fast favorite for many investors and expatriates. In addition to being named the safest country in Latin America in terms of personal and financial security, the country offers:
- A stable, solid democracy
- Large middle class (more than 65% of the population)
- Least corrupt in Latin America
- Friendly tax system
- Quality health care
- Modern infrastructure
- Solid banking
- Free capital entry and exit
The country has very few mortgages, with most land and real estate purchases being cash transactions. As a result, there is no price bubble in the country. Also, there is incredible transparency, enabling fair pricing.
Uruguay is the No. 1 choice for farmland because of the increase in global demand for food and the consistent long-term appreciation of land prices. It also provides an annual cash return, as well as being a nonvolatile asset and a good store of value.
What’s more, it’s easy to acquire residency and even citizenship in Uruguay. To see Juan’s presentation on the benefits of this beautiful country, click here to order the Total Wealth Symposium Defense Kit.
The Saudis Haven’t Killed the Energy Market
So maybe you’ve diversified your portfolio with some collectibles such as stamps, you’ve got some land in Uruguay that’s paying you some steady income, but you’re still looking for another investment opportunity that will supply you with steady income…
How about natural gas?
Don Hosmer, President of Royale Energy, discussed the rising demand for natural gas in the United States and around the globe. The war on coal has resulted in natural gas creating more electricity in the United States for the first time ever over coal — and that demand is only going to grow as coal continues to shrink in popularity.
What’s more, the U.S. has begun shipping more natural gas south to Mexico, while there are more fleets of cars using natural gas on the road.
In the presentation for Royale Energy, we learned of a new well project that will soon be started in Northern California and they still have some units left for investment.
But many investors aren’t snatching up the units just for the income that is paid out monthly — 100% of the investment is tax-deductible.
- 80% of each investment is categorized as Intangible Drilling Costs (IDC) and can be deducted.
- 20% of each investment is categorized as Tangible Drilling Costs (TDC) and can be depreciated.
You can learn the full details of this new investment project as well as more about Royale Energy by acquiring our Total Wealth Symposium Defense Kit.
Running Out of Time
We’ve only got one more day of the conference and I’m taking notes as fast as I can, but you don’t have to miss a second of the presentations or one recommendation if you order the Total Wealth Symposium Defense Kit. For full details, click here.
Coming up, I’ll recap the asset protection panel featuring Ted and Bob Bauman, and share more on opportunities in Austria and offshore IRAs.
Regards from your on-the-ground reporter,
Sr. Managing Editor, Sovereign Investor Daily