Even in these turbulent investment times it's still possible to make a sensible annual return by being an active investor in possession of regular current performance numbers for OIECs, ETFs and ITs. This can be done whilst still taking a cautious approach to risk.
I give you a simple example. The Saltydog newsletter graphs on page seven have been showing wheat prices on a continuous upward rise for the last twelve weeks - there was also a blog on why this might be occurring. So if you had been following this trend you might have looked for investments in this area. In the last four weeks the ETFS Commodity Securities Corn (CORN) has gone up by 48% and the ETF "Leveraged Corn" has gone up by 115%. If you had dipped your toe in the water four weeks ago for these four weeks and invested 10% of your fund into these areas whilst still keeping 90% in a Safe Haven fund earning zero percent. Then in the first case your annual return for your whole fund would be 4.8% and in the second it would have been 11.5%. That's assuming for the other forty eight weeks of the year you were 100% in a Safe Haven fund earning a zero return!
Have corn prices now peaked? - maybe. Is this a one off? - I don't believe so. Gold, some of the Emerging markets ,Income funds, Japan and other sectors come into and fall out of fashion on a regular basis. Sometimes there is a discernible reason, as in the case of the grains, but other times it hard to see why these movements are occurring. However if you have the numbers you can be invested safely with only a small percentage of your money at risk. Some times you will win some times you will lose. Just win more than you lose and make sure you have an exit strategy for this type of investment.
In next month's newsletter we start reporting on ETFs, followed up by weekly updates on our website.