These six best investment strategies for 2012 fit into an overall investment-portfolio approach that's designed to pay you superior returns with maximum asset protection regardless of the current turbulent market conditions.
Washington, DC (PRWEB) July 31, 2012
Responding to a deteriorating economic outlook for 2012, Quantum Financial Advisors’ Managing Director & CIO Joseph Rinaldi introduced his “6 Best Investment Strategies” for the turbulent market and economic conditions of our day.
The news is not good. In its latest report the Commerce Department showed GDP growing at only 1.5 percent rate from April to June 2012. Most economists don't expect growth to pick up much in the second half of the year. Europe's financial crisis and a looming budget crisis in the U.S. are expected to further slow business and consumer spending.
So if you’re like most investors, you’re searching for the best investment products and investing strategies to generate income and protect your money from the prevailing market and economic storms of our times. It's these investors in particular that Mr. Rinaldi wants to reach with his firm's "6 Best Investment Strategies for 2012."
“These six investment strategies for 2012 are built on our core philosophy which is for the investor to get paid to wait out these storms.” Mr. Rinaldi explains. "They fit into an overall investment-portfolio approach that’s designed to pay you superior income with maximum asset protection regardless of the current turbulent market conditions,” says Rinaldi.
The Metals sector. “While long-standing expectations for a global slowdown has pushed the metals sector into oversold territory, look for the pendulum to swing in the other direction. Gold, silver, oil & gas companies, and selected energy limited partnerships offer secure investment opportunities at a time when the E.U. and the U.S. continue an accommodative monetary policy. The metals sector represents a great way to protect your investments from inflation, a falling dollar, market crashes, and other by-product risks of loose monetary policies.“
The Energy and Utility sectors. “These areas continue to draw new investment money and are outperforming all other sectors due to higher energy/utility demand; faster sector growth in the U.S. relative to Asia and Europe; a shift towards less-expensive natural gas; and increased M&A activity. Moreover, the energy and utility sectors offer excellent "pay-as-you-wait" income with their comparatively high (qualified) dividends.”
High-Yield Bonds. "U.S. Corporate High-Yield bonds, with yields about 450 to 600 basis points above US Treasuries with maturities of ten years or less, offer good returns for the level of credit & interest rate risk. This is an optimal asset class to ‘get paid to wait’ with de minimis interest-rate risk.”
Emerging Markets. “Selected emerging markets have higher expected growth rates and lower valuations than those in the U.S. Their sovereign debt is also attractive. Take Brazilian, Australian and Russian Government Bonds. They currently offer attractive yield spreads with less structural & political risk than U.S. Government bonds. This is a first!”
Low Duration, High Alpha-plus Bond Portfolio. “Here's one of the best ways to generate high relative income (Alpha-plus) and protect your investments from continued expected poor economic outlook. Consider a customized blend of bond equivalents and bonds from a mix of E.U., Emerging Market Sovereign debt, and U.S Corporate High Yield bonds.
For example, QFA created a customized Alpha-plus fund for a client targeting a yield of about 5% (spread of 450+ basis points versus US Treasuries) and a five-year maturity with an investment grade rating represents for most investors an attractive investment strategy for 2012.”
Options. “Utilizing options to protect your principal (portfolio insurance) and generate additional income is in most cases ideal but, given today's turbulent market and economic conditions, a must-have in any portfolio.”
The “6 Best Investment Strategies for 2012” are explained in greater detail in Quantum Financial Advisors’ latest Money and Capital Markets Monitor Report.
Contact Joseph Rinaldi, Managing Director & CIO, Quantum Financial Advisors, Inc.: phone 202-955-9201; email JRinaldi(at)QFAInc(dot)com; on LinkedIn.
About Quantum Financial Advisors, Inc.
Quantum Financial Advisors, Inc. is a Washington, D.C.-based money & wealth management firm serving corporations, high net worth individuals, non-profits, endowments, federal agencies, pension plans, trusts, and SMBs. Our clients receive customized portfolios and our proprietary approach on asset allocation, sector rotation, and risk management that delivers exceptional returns, at lower risk, regardless of market condition.
1633 Q Street, NW, Suite 230, Washington, D.C. 20009 | 202 955-9201 office | 202 955-9204 fax | QFAinc.com.