Wednesday, January 15, 2014

15/1/2014: BusinessInsider's Investment Ideas For The Next Decade

BusinessInsider is running a 10-year investment suggestions from some analysts...

Warning: my suggestion is at number 17.

I should put some disclaimers around this - in my view, one should aim to hold a diversified portfolio of investments, structured to match your life-cycle objectives and risk preferences, as well as reflecting income and wealth specifics, etc. Hence, my contribution should be looked at in this context, as food for thought...

The idea of 10 years-out outlook gave me a bit of a thought... and although I am not known for providing trading ideas, here are my 5 cents on 15 and 30 year horizons:

For the next 15 years: A basket of precious metals: Both monetary conditions and physical demand dynamics suggest that a non-speculative (cost-averaging-based) accumulation of these within a balanced portfolio will provide a reasonable long term hedge against upcoming risks and demand pressures. This is not a speculative bet, but a view that long-term, small fixed share of a balanced portfolio should be maintained in the gradually accumulated precious metals positions.

For the next 30 years: arable land with substantial water rights in Northern US and Central Canada. A combination of rising global temperatures, declining fresh water reserves and rising pressures on food production make it a compelling investment case. Opening up of the Northern Sea Route and generally increased accessibility of Northern Territories, coupled with stable institutional and legal environments are making it a good risk hedge for potential geopolitical risks that logically likely to accompany the aforementioned pressures.

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