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Correlation Markowitz worked on the assumption
that all investors what to avoid risk if possible.
He considered how ALL the different investments
in a portfolio can be expected to move relative to each other and
how this affects the overall risk / return of the portfolio.
The definition of this is "correlation," and
measures how much an investor can expect different investments or
asset classes to change in price relative to each other.
Attractive Rates of Return
If you choose the right alternative investment,
then it will not only help reduce the risk of your portfolio, but
can help provide better overall returns because some investments are
correlated and move together. A selection of shares for example,
will probably all go down together in a bear market; however, other
assets may actually rise.
An investor should therefore combine a number of
non-correlated investments to balance the risk and reward of the
portfolio.
What is the Best Alternative Investment?
UK land is an ideal alternative investment to add
to your portfolio - the reason for this is:
Its historical performance, not only has shown
good growth, but downside risk has been relatively low.
Land has also produced solid long term gains
regardless of whether stocks, equities and mutual have been rising
or falling.
Land Prices Rising Strongly Creates an Investment
Opportunity UK land has on average risen in value by 920% over 20
years.
This represents the average, and investors who
have been careful in their plot selection have made far greater
gains.
The UK is one of the most densely populated
countries in Europe and has a rising population, combined with a
severe housing shortage.
There is a need for new homes to be built and
land developed. You can make significant gains by buying land that
could get planning permission in the future.
Alternative Investments are not Just for the
Rich!
You don’t need to be wealthy to consider land as
one of your alternative investments and even the smallest investor
can take advantage of this opportunity.
Many specialist companies will help you select
land that has a high potential to rise in value. They will do the
research and give you all the facts you need, to make an informed
investment decision.
To learn more about
investing in UK land and other low
risk high return land investments please visit our web site:
http://www.lpgroupinternational.com/ |