Another one bites the dust.
More primaries concluded last night, with Marco Rubio dropping from the race and Trump taking all but one of the states up for grabs. On the other side of the aisle, Clinton grew her lead over Sanders.
We are inching closer to November, and it appears that America’s potential presidential candidates are going to be Trump and Clinton.
Is It A Good Time to Be a Stock Picker? Interview With Worm Capital
ValueWalk's Raul Panganiban interviews Eric Markowitz, Director of Research, and Dan Crowley, Director of Portfolio Management, at Worm Capital. In today’s episode they discuss their approach at Worm Capital and where they find opportunities. Q4 2020 hedge fund letters, conferences and more Interview with Worm Capital's Eric Markowitz and Dan Crowley
An interesting question arose this morning at the Offshore Investment Summit about the likely impact of certain candidates winning the presidential election. Jeff Opdyke believes that if Clinton wins, investors should short sell all health care companies as she pursues universal health care in America. If Trump wins, Jeff believes we will see a boost to defense stocks, but that Trump will crush most other industries as he pursues a hard-nosed approach to trade deals that will likely alienate the rest of the globe.
Regardless of your political leanings, it is a very good idea to have a few unique investments to help protect your wealth against the turbulent times that are still headed our way…
Collectibles: Unique Investment Opportunities
Day two of our Offshore Investment Summit kicked off with presenter Geoff Anandappa of Stanley Gibbons. Delving into the theme of diversifying your portfolio, Geoff discussed the importance of diversification via rare tangible assets, such as collectibles, as a way to add stability through uncorrelated assets. With collectibles, the market is dominated by collectors so that during tough economic times, these assets aren’t being sold in a mad rush like stocks.
In fact, many investors and collectors rush to pick up new collectibles due to their ability to retain their value. Collectibles offer stable returns of approximately 10% per year, and Geoff noted that even during the market downturn in 2008, collectibles such as coins and stamps rose in value.
Through the Flexible Trading Portfolio, Geoff showed how you can easily add collectibles to your portfolio. What’s more, there are no annual charges or maintenance fees. You can see Geoff’s entire presentation and get glimpses of your various investment options for collectibles by clicking here.
Sticking with investments, Royal Energy’s Don Hosmer switched gears to present how owning a stake in a natural gas well not only earns steady income, but offers a great tax advantage. Natural gas demand is rising around the globe, recently exceeding coal usage for energy production for the first time ever. Royal Energy offers a way to buy a stake in natural gas wells opening in California that avoids paying general or administrative fees, or calls for additional money following your initial purchase. You can watch Don’s entire presentation on the value of investing in natural gas wells by clicking here.
A New Look at One of the Oldest Professions
When asked whether he’d rather have all the gold in the world or all the farmland in the world, Warren Buffett quickly chose farmland. At the end of the day, everyone has to eat and the world population is growing, creating a steady demand for quality food.
The third presenters of the day, Sebastian de Silva and Juan Federico Fischer, revealed that land prices in Uruguay have temporarily pulled back, creating a great buying opportunity for investors. Sebastian and Juan showed that Uruguay experienced a similar pullback in 2002, just before 13 years of steady appreciation.
Uruguay offers great opportunities and is a competitive global player for farming with its non-degraded soil, even year-round rainfall and two-crops-per-year growing season. What’s more, Uruguay offers a transparent market.
But I don’t know anything about farming. Sure, growing up in Kentucky, I spent some summer afternoons working out in the garden with my grandfather, but that certainly didn’t give me the experience I need to succeed at farming. And I’m sure I’m not alone.
However, if you purchase farmland in Uruguay, you have two great options. You can lease out the land and receive a steady income of approximately 3 to 4%. Or you can hire a farm-management firm, which will earn you a steady income of roughly 6 to 7% (forestry earns about 10 to 11%).
Juan and Sebastian concluded their talk by taking us on a tour of a vineyard and a soybean farm. If you would like to see the entire presentation and watch a video of our trip to the farm, please click here. Trust me, this was a truly gorgeous sight.
More Than Stocks
Stocks are a good starting point for any investment portfolio, but diversifying to include assets such as precious metals, collectibles and real estate creates a balance that will protect your wealth against not only pullbacks in the market, but also the threat of confiscation as well.
Now, it’s up to you to take those first steps.
Sr. Managing Editor, Sovereign Investor Daily