A well rounded investment portfolio helps individuals in many different ways. A growing portfolio helps investors achieve their financial goals. When diversified, these portfolios can protect against inflation and market downturns. In order to achieve consistent growth within a portfolio requires some general knowledge of investment opportunities. Aside from the stock market, there are many other investment vehicles to choose. Most investment opportunities change with the season. Understanding which ones are most popular in each season will help investors select the best investment opportunities for growth.
Real Estate Investment Opportunities
Real estate investments are seasonal for a few reasons that may vary by location. Investments that involve new construction are generally most popular just before or during warm weather seasons. Depending on typical climate, construction may be performed year round or for just a few months during the Spring and Summer.
Property, both commercial and residential, can be seasonal based on how the real property is used. Commercial and retail space may be rented during certain times of the year, producing a higher potential for return. Condominiums and vacation rentals of course also depend heavily on the vacation season based on location. Real estate investment vehicles that include underlying mortgage instruments may also vary based on season.
Commodity Investment Opportunities
One of the most common investment options that depend on seasonal changes is the commodities market. This is particularly true of agricultural commodities. Soybeans, corn, wheat, and even livestock. These food products offer a lot of information for investors. Commodities indicate trends happening throughout the global economy. Specific commodities, especially near harvest times, fluctuate wildly. These fluctuations can vary throughout the day, making the commodities market a popular investment option for investors with a higher risk tolerance.
When searching for investment opportunities, especially in the real estate realm, be sure to consider all demographics. Certain areas of the country offer better investment options during the Spring and Summer months, while other locations may be hotter investments during the Fall and Winter. This concept is especially true for rental properties such as ski resorts or beach vacation spots.