It's Not Gravy Forever Of Investment Peaks

Scientists have been searching for a source of perpetual motion for decades - the thing that you set in motion, and it just keeps running forever. Unfortunately, this sort of thing doesn't exist in nature, and that should tell you something about your investments - they are finite, and there are definitely investment peaks to be watched for.

Nothing is forever

An investment is not something you put money into once then forget about it, and simply keep reaping dividends in perpetuity. Sure, some investments may seem that way: treasury bills, bonds and other boring, low yield investments do in fact continue to generate modest returns for quite some time, but so does bank interest, which can't really be considered investment per se - those forms of money storage don't seem to have investment peaks.

What exactly are we talking about then?

Investment peaks are nothing more than the point where an investment, be it a stock or business enterprise, has reached its earning potential for your portfolio. Call it a saturation point or a stalling out of sorts. It's the point where an investment has simply ceased to become an investment anymore and it begins to be a financial drain rather than an asset.

How can I prevent against this?

Be vigilant of your holdings and portfolio. A perfect example of investment peaks is your home - not five years ago, it had fundamentally peaked in value, reaching higher and higher until it superseded all known data or metrics in the history of American homes. After that, however, it started a slow, gradual descent - not so gradual for some people - to the point where it is worth less now than it was five years ago. Not many people can say today their homes are worth more than they were in 2007. Other investments such as businesses, stocks, or ventures behave accordingly, they don't rise for ever.

Get out your crystal ball

If you could call the peak of a stock or home price, you'd be clairvoyant. The key to watching for investment peaks is not to call the very top, although it would be nice to - the key is to set a realistic goal for an investment and then remove your money when you've achieved that goal, and do something else with it. Greed keeps us locked into declining investments long after they've reached their expiration dates. We think they'll go back up, and we end up riding them all the way down instead.

Your investment strategy needs not so much to focus on predicting the future as it does to make a detailed investment plan and stick to it, exiting from the investment when the income goal is met, and no later. Will this result in leaving some money on the table? Absolutely, but money is better left on the table than it is coming out of your pocket die to errors in judgment caused by blinding greed. Do yourself a favor and get with your financial advisor, or do it yourself if you have to, but set concrete financial goals and be well out of the investment when the investment peaks, which it most certainly will.

President Dilma in Spotlight

Much of the confidence in Brazil investment opportunities comes from the perception that Brazil has a strong government led by determined leaders. President Dilma Rousseff is one such leader and this week, she captures takes the spotlight on the international stage.

Dilma's higher than usual profile this week is US-based. The Brazilian President features on the front cover of Newsweek in its American edition and Dilma will the first woman head of state to open a United Nations General Assembly. In addition, she will receive the Woodrow Wilson Public Service Award.

This stream of accolades comes as recognition of Dilma's decided leadership of Brazil, currently a leading light in times of global uncertainty. Dilma's international acknowledgment will also serve to further corroborate Brazil as a destination for some of the best investments for 2011, particularly when it comes to political and economical security.

Brazil in Control

Newsweek, under the title "Don't mess with Dilma", details the President's personal and political life. The article emphasises Brazil's economic growth and Dilma's part in this. The recent visit by Barack Obama when he referred to Brazil and the US as "equal partners" and Dilma's inauguration of the UN General Assembly confirm Brazil's presence in the world arena.

When asked what differentiates her country from the rest of the world, the Brazilian President highlights Brazil's strong political and banking controls. For Dilma, these controls mean Brazil can counteract slower economic growth or even global stagnation, unlike many other countries.

Recent statistics back this theory - Brazil barely suffered the effects of the 2008 global recession and currently has record levels of employment and middle class growth. Direct foreign investment in Brazil is also seeing the highest rates ever with private investment in equity at the top.

The latest Ernst & Young Capital Confidence Barometer Brazil recently concluded that when it comes to Brazilian investment opportunities, "the pluses far outweigh the minuses". This sentiment is echoed by foreign companies active in Brazil, many of whom have noted that 2011 has been a year with intense investor interest and activity.

Centre Stage

In addition to her front cover presence, Dilma is also receiving the prestigious Woodrow Wilson Public Service Award. For Jane Harman, CEO of the Woodrow Wilson Center, "President Rousseff's story has inspired millions of women throughout the world to reach for leadership".

Shortly after receiving the award, Dilma will open the General Assembly at the UN in New York where she will be the first female head of state to do so. After just nine months as President of Brazil, Dilma is proving to be an immensely influential leader, capable to leading her own country and others. Brazilian investment is undoubtedly in safe hands.

About Obelisk International: Obelisk International offers select investment opportunities in Brazil in a range of sectors such as social housing, residential real estate and construction. Obelisk gives investors security, profitability and diversity thanks to a combination of close attention to our clients' investment requirements and high quality in-house research and analysis.

Good Investment For Strategies

An investor should always shoot for an increased level of return than his money can earn from the prevailing market interest rate (found at your local bank), which is considered safe and guaranteed. He is taking a risk by investing his money and expects to be be justly compensated. An investor, as a result has to perform a good judgment about the prevailing situation in the market before making the investment. Depending on the asset these conditions include local and international economic conditions (including political issues), industry specific concerns, a company's leadership team, and so on. Of course there are many factors that are simply impossible to know, hence, the risk. Using technical analysis software is helpful in purchasing stock.

Smart investors will not invest their own money. They will either borrow from a bank or credit union, lend guidance in exchange for another participant using his money, or even mortgage a property and use that amount for the investment. Then he will try to earn more than the interest amount that he has pay on such loans. It has been seen that some successful investors won't even live in their own home. They will actually rent a home from someone else. The reason is that they find it is far better to invest with the money they save by not purchasing a house. (Though there are tax advantages to owning.) An investor needs to be efficient and should make wise decisions in the investment strategy, being opportunistic and not afraid of being creative.

Investing suggests spending cash to purchase fixed assets. When an investor decides to invest his or her money in bonds, he has a presumptive desire to generate profits from that purchase. Fixed assets typically involve company shares, bonds, land and buildings, gold and other metals, fabricating plants, machinery, etc. Those assets can yield either a profit or a loss relying upon the market situation at the time of purchase and sale.

A savvy investor has to account for many factors before investing his or her capital. Commonly an investor will buy the assets when its selling price is low and can make profit by selling it at the higher cost, though there are several techniques for making money during the decline of an asset's value.

An additional smart approach is to generate the most returns with the least amount of money invested. One of the most efficient ways to do this is through stock options trading. Understanding options trading will allow you to accelerate cash inflow more so than a common stock purchase is capable of.

One to thing to remember, it is better to diversify the investment portfolio. Instead of investing in only one stock or property, it is prudent to have different forms of investments. The justification is found in the unpredictable future situations in the world economic marketplace. It is uncertain whether an investment will yield income or not. If a single investment is profitable, no issues. But if it loses money than the investor has to suffer it for the whole amount he dedicated to the one asset. In the case of investments in multiple stocks, it is logical that not all of them will lose money. In a properly diversified portfolio, if some assets generate negative returns, others will produce earnings.