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Apart from the conventional investing methods, Cedar Wealth Management adopts other alternative investment strategies and techniques as we aim for a holistic approach to take advantage of the global financial market.
These are tangible assets, and they cover investment in assets like infrastructure, real estate, natural resources, etc. There is a positive correlation between real asset performance and that of inflation, and this makes real assets a great hedge against inflation.
Cedar Wealth Management offers access to the global economy by capitalizing on foreign exchange (forex). We trade is virtually all currency pairs.
Forex is one of the most popular methods that generates daily funds for investors and this enables them take advantage of the fluctuations in the value of a currency. The forex market is very liquid and has a very huge trading volume, and requires a very methodical and meticulous approach for executing trades to bring forth good results. Cedar Wealth Management is here to help experienced traders and even new comers on the journey towards financial stability.
The basic definition of foreign exchange describes the transfer of currency between buyers and seller at an agreed price in a broad network. Currencies are converted from one to the other in the forex market.
Wealth management is directly related to your specific financial goals and conditions. We help you design a strategy specific for you
Other Alternatives include
“Everyone wants to live on top of the mountain, but all the happiness and growth occurs while you’re climbing it” – Andy Rooney, journalist
The goal of every individual (consciously or unconsciously) is to be happy. Intrinsically, no one consciously jumps into sadness. As humans, we crave for things that makes us feel good about ourselves to the end that we are celebrated and considered successful. However, not everyone ends up being entirely happy with life. This anomaly can arise from the fact that most people do not enjoy and understand the process leading up to this success they seek. The quote above by Andy Rooney clearly explains what should keep us enthusiastic and happy; the growth process. The growth process is one that should be enjoyed and attacked with persistence, diligence and competence.
The Need to Stay Ready
One thing Cedar Wealth Management recommends to partners is that savings, investing and wealth protection has to be done even when there is no exact reason for doing so. Research shows that majority of people jump on the excuse that they are not planning to purchase anything as a way of not practicing saving and investing.
This is a skill that has to be practiced and made a habit as there can be no investing without savings that have been set aside. A good saving habit is truly the only factor investors can control, and in extension, this produces the only thing that matters, more funds for investing!
Cedar Wealth Management also advises investors to pick saving plans that are related to their goals and also convenient for them. The goal here is to create a good habit and not necessarily the amount being saved. The habit can lead to better percentages of your income being kept aside.
The succeeding section will explore the major asset classes that investors can take advantage of with saved money kept aside
Understanding Investment Opportunities Through Asset Management and Inflation
In business and in very simple terms, assets are useful/valuable things that puts money into your ‘pocket’. Understanding how to identify fruitful assets is the keystone goal for understanding what and how to invest. A ‘pyramid of assets’ will be explained below to enable you understand how assets work (passively or actively), and what to expect from them.
Asset Pyramid
1. Your Own Earning Power
This relates to one of our core values which is knowledge. Your highest asset is yourself, and just like any other asset, to make ourselves effective, we have to consciously and consistently invest in ourselves. By doing this, we will retain our earning power over a long period of time. Value in us can never be lost on the long run. You are your best hedge against inflation. Study materials relating to your areas of expertise, get basic and general knowledge (like the one you’re getting from CDW), or better still, allow a platform like Cedar Wealth Management handle these for you.
The money you spend now to invest in yourself will reduce in value overtime, and the skills and knowledge you gain now will increase in value over the same time span. To put into context, imagine spending 100 dollars to learn a skill to improve your knowledge in an area. In say 10 years’ time, the 100 dollars you spent must have lost a huge part of its value as a result of inflation, but the skills/knowledge you gained will increase in value and you could be paid thousands and millions of dollars for it.
These are asset classes that are involved in the production valuable services or products. They are produced by businesses that focuses on producing goods and/or services. So this basically means that a working business that produces goods or valuable services is a productive asset. These assets are divided into the mediocre type and the exceptional types.
To avoid the mediocre type businesses/assets, we usually advise investors to be mindful of the following:
On the contrary, we advise investors to target:
Investments in real estate or farmlands are great for the long term because they keep the leverage. Meaning that they can use debt/borrowed capital and make profits that are greater than the interest payable. While still keeping the capital investments.
These assets don’t increase their real value, if they do, they don’t increase by much; they generally keep their real value and serve as a hedge against inflation. Their value doesn’t multiply. They are assets with low risk and do not require active investing from an investor. They could include arts, houses, and even gold. As a hedge against inflation, they are great for maintaining real value in inflation. Although their monetary value increases, their real value do not increase. To put into context, consider an asset that increases its monetary value by about 5% per year, in a market with an inflation rate of about 5%, this asset will not grow in real value, it will have a net value increase of zero.
These assets include money in your account (USD, Euro, Federal government bonds, etc.). These assets are affected by inflation and loose value in the midst of high inflation. To put into context, let use Britain as a case study; if you leave 1million Euros (E1,000,000) in your bank account for a year, judging from the current inflation rate in the country (about 20%), this means that after a year, your money will lose about 20% of its purchasing power – exactly E200,000 of purchasing value lost in a year is very huge. The inflation rate in the United States were at its record high (5%) after the heat of the Covid-19 pandemic in 2021. This means that if you placed your money on fix deposit in the bank for a year for a 2% profit on your capital, the profit won’t still beat the value loss from inflation. The advantages of this asset is that it is liquid and can be immediately used. They give investors the psychological satisfaction of not liquidating other assets up the pyramid when there’s an immediate crisis.
Let’s move to the next asset up the pyramid.
Cedar Wealth Management is driven and focused on creating long term values. We believe in an industry with integrity and always partner with companies that practices high standard of corporate governance and business ethics.
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