Five Essential Themes For Every Investment Portfolio
ArborInvestmentPlanner.com
SPECIAL REPORT
By Ken Faulkenberry
How do you get a strategic advantage that can add the percentage point or two that really gives your investment portfolio extraordinary returns?
Look at what one or two extra percentage points return can mean to your portfolio. A $100,000 investment earning 8% for 30 years returns $1,093,573, at 9% returns $1,473,057, and at 10% returns $1,983,740. It’s amazing what that extra two percentage point return does over a lifetime!
Return on investment is driven by supply and demand. If you have demand that outstrips supply; the return on investing in that product or service will have to be higher than average to attract investors into investing and meeting that need. Therefore, everything being equal, if you can invest where demand is high and growing you can expect a higher than average rate of return on your investment.
Here are five themes with the potential of providing the extra return on investment that transforms your portfolio from average to extraordinary:
ENERGY – Whether we are talking about oil, natural gas, coal, nuclear energy, or new green energy, we will probably need it all. We already use all the energy we produce worldwide. The tremendous growth expected in the standard of living of the emerging markets, in addition to worldwide increase in population, will force us to find more ways to produce and deliver energy to an energy starved world.
INFRASTRUCTURE – No state or nation is able to thrive without the infrastructure to support growing economies and populations. Airports, railroads, highways, communications, etc. are all needed to move people, products, and information efficiently. Developed countries have old and neglected infrastructure needs. Emerging markets have unending needs for new infrastructure.
FOOD/NUTRITION- As third world nations develop they require more and higher quality food. This process is already under way. Add world population growth and you have ever increasing demand for good nutrition and quality food for decades to come.
DEFENSE/TERRORISM/WAR – We live in a dangerous world. Trends that include an increasing number of fanatics willing to kill innocent people will require technology and diligence to defeat. Add to the fact that as we have become more global and mobile we have needed more resources to keep the peace, not less.
HEALTH/ENVIRONMENT – This might be the most rewarding and riskiest investment of the five. Due to population growth in the developing markets, higher standards of living being demanded by emerging countries, and the aging of the developed nations (particularly the U.S. and Japan); the demand for health care and need for environmental services are expanding rapidly and possibly outstripping any other area. The growing risk is the trend toward government which socializes the industry and creates rationing instead of a free market that innovates and grows to meet expanding needs. Therefore, one must be extra careful when investing in this area.
Each of these five themes have the potential to provide extraordinary investment returns because the demand created by the global market place will require these needs be met. Choosing individual investments that provide a properly diversified asset allocated portfolio takes knowledge and many hours of research. Ken Faulkenberry, principal at ArborInvestmentPlanner.com, asserts, “We take advantage of global trends and provide the Arbor Asset Allocation Model Portfolio (AAAMP), Trade Alerts, and Updates to help independent investors make their own investment decisions.”
“People want to stay in control of their assets,” says Faulkenberry, “but lack the time, resources, or knowledge to research individual investments and place them in a properly diversified portfolio. Companies like Arbor Investment Planner provide these services, along with peace of mind.” More information is available at: www.ArborInvestmentPlanner.com.
