With Donald Trump now has re-electing as President of the United States of America, CIO How You Should Invest Under the Trump Presidency is making some serious money by recommending that investors diversify away from traditional stocks and into alternative asset classes. In fact, this investment philosophy is so strong that the top private bank, HSBC, is even publicly holding stocks that are listed on one of the New York Stock Exchange’s MegaDocks. If you want to know how you should invest under the Trump presidency, consider this gap in investment history.
The last ten years have seen a huge increase in the number of bank mergers and acquisitions. These corporate transaction costs, though, do not show up in banking statistics. Instead, shareholders will see increases in quarterly profits, shareholder equity, and net worth. In fact, many analysts believe that the mergers and acquisitions are one of the drivers of economic policy. If these changes continue at the same pace that they are currently doing, we can expect a continued and widening increase in banking assets, at both the national and local level.
If you are an American business person with a small or medium sized portfolio, the top private bank on the planet is likely sitting on a pile of cash. While a large portion of this investment capital is invested in commercial real estate and infrastructure, the savings and opportunities afforded by this business investment mentality should be utilized for more than infrastructure projects. The real estate sector remains one of the most secure and profitable investment arenas in the world. As the U.S. economy and the housing market rebound, the commercial real estate market will experience strong growth. If you are thinking about investing in commercial real estate, you should be thinking about asset allocation, and not asset positioning.
This is a critical qualification to look for if you are considering making this type of investment. When you diversify across asset classes, you create a much more resilient and effective portfolio. If you have only one major area of business growth potential, it is very easy to get overextended. On the other hand, if you have assets across a variety of business domains, your overall profitability and return on investment will vary more slowly so that your portfolio continues to grow over time.
The second step on the CIOS Money Tree is to consider whether you should invest in dividends or share-based compensation. While both are important in terms of growing your portfolio, some managers tend to put their weight solely on dividends, which yield a lower return on investment. In contrast, the top private bank on the planet is likely to invest a hefty portion of its assets in share-based compensation plans. Share-based compensation plans pay out regular cash flows to the shareholders of the corporation, which represents a positive return on investment. These types of plans often offer higher dividend payments throughout the year as well as annual dividends during particular months of the year.
After you have determined the best areas for growth, you need to make sure that your money management strategies allow you to capture those opportunities before they become too difficult to manage. If you are looking at making money from financial investments, one of the keys to success is liquidity. To ensure that you are not constantly liquidating your capital, it is crucial that you have access to adequate levels of cash flow. The most secure way to build up your liquidity is to diversify your holdings across a wide range of fixed income instruments such as bonds, equity securities, and money market funds. If you want to know more about building capital to meet long-term obligations, talk to your financial manager.
Once you have considered these important details, you can determine how you should invest under the CIOS Money Tree. For many banking customers, this part of their financial planning involves putting their money in a self directed IRA accounts and leveraging their returns to take advantage of tax breaks and additional investment opportunities. If you are concerned about reducing your taxable income, consider including stock portfolios in your IRA account.
Your custodian will help you determine which strategies will work best for your current portfolio and your future needs. When it comes to deciding how to invest under the CIOS Money Tree, it is important to make the right decisions and get advice from your banking professionals. Talk to your CIOS financial consultant today. You’ll be glad you did.