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5 out of the box investing opportunities for 2019
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Loading...As always, the attractiveness of your investments depends on your appetite for risk, but investors and analysts are more optimistic than three months ago, so here we will go over 5 out of the box investment opportunities for 2019.
1 Mark Mobius /Founder of Mobius Capital Partners/
Mark Mobius expects serious recovery in emerging markets. In 1987, they were just 5% of global markets, while today they are 40%.
The investor notes that many of the markets have formed a double bottom. Mobius has a strong potential in Brazil, where reforms against corruption and a shift to a corporate governance model for companies should give investors the necessary peace. Despite 40% rebound from the bottom, the investor sees additional opportunities for promotions. Another market where profits can be sought is Russia, where stocks look highly underestimated. Other emerging markets in Mark Mobius are Turkey, India and Mexico, where stabilization is taking place despite the shocks in 2018. There is also interest in the Indian Rupee as the investor expects the initial weakening of the currency. "The big banks have a lot of bad loans, and the government will save them and recapitalize them, which will affect the currency, we will see ruble weakening because of the forthcoming elections and the need for BJP rulers to give farmers discounts." But this weakening is temporary and the central bank will stabilize the currency over time, and I would put 30% of my money in emerging markets in India. "
2. Sarah Heller /Master of Wine at Heller Beverage Consultancy/
As global warming leads to hotter temperatures and heavier weather conditions, winemaking is particularly vulnerable. Parts of California and Australia are particularly endangered, forcing manufacturers to seek a cooler climate by planting higher heights or cooler offshore sites, but the danger of fire and salinisation are additional challenges.
Because of its unique climate, New Zealand looks like a solution to these challenges. Not only is his summer cooler but his proximity to the sea (the furthest point in the country is only 120 kilometers from the Pacific Ocean to the east and the Tasman Sea in the west) will help mitigate the effects of the change climate change. The closer you are to the water, the stronger the ocean's effect is.
At the same time, New Zealand is trying to improve the production of wine from ready-to-drink bottles to sophisticated wines that have longevity in the bottle and start with a premium. Several wineries started to produce a premium soybean blanc, but the potential for a higher-grade chardonnay barely began to be explored on a larger scale.
Despite New Zealand's 2017 law limiting foreign investment in real estate, it is still possible to buy up to five hectares (12.4 acres) of land at the same time if it is intended for gardening. A typical plot of this untreated land, located on the edge of the best Hawkes Bay and Marlborough wine regions, can cost you $ 250,000. For another $ 750,000, you could plant and cover several years of agricultural and contractual wine costs.
3.Anthony Roth /Chief Investment Officer, Wilmington Trust/
Investments in troubled debt will become very active. We will begin to see that some companies have a difficult period to refinance the debt.
An opportunity we recently proposed was a fund that buys non-performing loans held by European banks. It is politically very difficult for banks to restrict loans, ranging from residential mortgages to debt secured by factory equipment. In many cases, the borrower has stopped paying interest but also knows that the bank will not liquidate them.
A private investment company can buy credits at a value of 60 to 70 cents per dollar and immediately tell the borrower: "Pay me or I will demand debt." Net profits can be high.
You would not want to go into this just before a serious economic downturn in Europe, but the likelihood of recession is diminishing. In many cases, credits are bought and sold within 12 to 18 months, so the company can have a good idea of the economic outlook when buying them.
4. JD Montgomery /Managing Director at Canterbury Consulting/
One of my topics for this year is the future of food. People care more about what they eat, so look at food companies.
Investing in technology start-ups can be very capital-intensive and time-consuming to build something that is very large. But investing in newly established food companies is different. Five important criteria stand out: Products must be accessible, organic, plant, local and fresh, although a product may not hit all five.
There are two ways to invest in this trend. You can invest in funds such as Collaborative Fund or Obvious that have exposure to consumer brands or you can try to invest directly
These new companies are able to compete with established brands by selling through Amazon.com or going directly to consumers through companies such as Shopify and Ordergroove. They should not buy all the equipment needed to produce their products; they may subcontract.
The trend of busy working people who, despite the hectic daily lives they want to live healthy, is likely to grow stronger. This in turn will create a great demand for the products of the above described companies.
5. Norman Villamin /Chief Investment Officer, Private Banking, Union Bancaire Privee/
When investors think of growth, Japan is rarely the first thing we think of. It is easy to understand why: The collapse in real estate prices since the 1980s left economy stagnant for decades, and large Japanese corporations did not have the dynamics of their counterparts in the US. This is about to be changed by the unprecedented entry of women into the labor market. Nearly 53% of the Japanese labor force was female last year.
This is reminiscent of the major changes in the US labor market in the 1970s, when declines in production, wage stagnation and unemployment made women go out and find work. All these additional incomes stimulated the US economy and it is very likely that the same will happen in Japan. Consider all the ways this change will affect the economy: Families will need more childcare, women will have to buy more attire in the workplace, and households will even eat more when the two spouses are busy work time.
That's why Norman Villamin advises clients to invest in this megastrend by looking for small- and mid-cap stocks that can grow fast when these changes evolve. This includes employment agencies providing temporary workers, part-time workers and permanent workers, apparel manufacturers and retailers serving women workers, and restaurants and leisure businesses. True, it sounds hard to believe, but Japan - a market that is so often overlooked - can finally be exciting if you know where to look.
Source: Bloomberg Finance L.P.
Original post: Where to Invest $1 Million Right Now
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