Monday, January 14, 2013

Exploring the Virtual Economy

While it has been a while since my last post, the holidays have come and gone. President and the U.S. Congress acted to avoid the fiscal cliff with new tax increases for most Americans.  Granted the payroll tax cut would continue to hurt Social Security funding if left at the old rate for individuals.

The main issue for investors is an age old question. What asset classes or investments give me the best chance to earn a real rate of return and avoid risk?  As I have mentioned, I believe we are in a "virtual economy" with no answers to the problems that exist in the real economy.  Major structural imbalances will take many years to correct, as the economic conditions have taken many years to develop.  As investors explore the uncharted waters, I think we need to step back and look at some long-term investments to consider.  Problems can create opportunities and I believe longer-term trends to be more appealing then to play the hourly changes in stock prices. Many institutions are now involved with high frequency trading strategies. I am sorry, but my computer is not fast enough.

What long-term areas do I find appealing?

Natural Gas and the potential for exporting the fuel.
Natural Gas engines
Facilities to export Natural Gas
Pipelines
Heath Care and Pharma
Long-term Senior living facilities REITS

I am interested in other long-term areas they find appealing. Feel free to send me a note.   

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