Ritch Wigham | Investment Advisor

We Live in a Commodity Driven World ...

Do you know how to profit from this fact? Now, more than any time in the last generation, the world is faced with the crucial balances of supply and demand. From gold to agricultural there has never before been the demand that we now see from a rapidly expanding population which expects a continuing improvement in their standard of living. Whether you are in the developed world, or one of the newly emerging economies, potential tightness of supply will influence how you live, and how we will conduct our lives into the future.

Risk

Or more importantly "Risk Tolerance". I get asked all the time about how to reduce risk. The theory of all markets is that they have an ability to spread risk over a larger footprint. It is up to the individual to assess the amount of risk that they are able to tolerate. It is my job to help the individual to assess that risk tolerance level, and make sure that the strategies employed fall within the parameters of the level of risk that will be tolerated. In the real world, "the lower the risk, the lower the return". Government bonds issued by stable and fiscally responsible countries carry a very low interest rate, a (supposedly) very low risk, and consequently a very low return. At the other end of the risk spectrum, equities (non-dividend paying) have the potential for a very high return and therefore carry a commensurate amount of risk, depending on the equity involved. These assessments are used to tailor a client's portfolio once we have established the level of risk that will be tolerated.

How does this square with our commodity driven world?

For the foreseeable future, the world will use more of what is produced not less. I design portfolios and strategies to take advantage of this fact. Regardless of the commodity, we will find the sectors that should benefit most from this outlook. By properly taking into consideration those things the world is going to consume more of on an ongoing basis, your portfolio can benefit. With more than twenty years of experience in how commodity relationships function, I am able to construct investment scenarios that suit both the world we live in now, and the world we will encounter in the years ahead. To find out how your portfolio can benefit, contact me now, or visit my news page to learn more.