High ROI with Low Draw Down: is it Possible with Managed Forex Accounts?

By Brendan Wilson

In the last 12 months we have been through the worst economic crisis since the great depression, and hopefully we have seen the worst of it. But at the end of the day, as investors or potential investors what have we really learned? I suspect not a lot. Individuals and fund managers will plow back their wealth back into the traditional investment vehicles and life will return to normal, or will it?

So how do you go about finding a suitable investment vehicle that also fills the requirement of giving you real diversification as well as high enough returns to justify any increase in risk? For suitably qualified investors with an appropriate appetite for risk, the answer may be to invest in a Forex Managed Account. This fulfills the requirement for diversification by providing a non-correlated investment vehicle with suitably high returns. High enough returns to justify the extra risks as well as offering excellent liquidity, something not often associated with the property market for example.

Currencies will always have a high residual value, whereas stocks which can literally fall to near zero overnight or they can be subject to a halt of trading or any number of adverse news events that can see their value hit hard, all the while you may have little or no chance to liquidate your equities for a diminished return. Unlike stocks, currencies are backed by a countries central bank, so the whole nation would need to become bankrupt before its intrinsic value becomes in any way diminished.

The post financial crisis global economy is likely to face a whole paradigm shift where people will seriously reassess the use of traditional asset classes such as stocks, bonds and other derivatives. Considering in the US alone 72 banks went under, small investors were simply not protected by those institutions charged with regulating the industry. Regulatory authorities were either grossly incompetent or simply lacked the tools and authority to put the necessary measures in place. In the end of course it was the small investor who came of worse.

It was obvious even well before the crisis that many people had far too much exposure to the stock market, especially those that were either retired or looking to retire soon. I only need to look at my own parents situation to know about this reality. Many people are having to face the prospect of returning to work or indefinitely delay their retirement. Their dreams of an early and prosperous retirement shattered. As always the answer lies in diversification of your asset portfolio across multiple types of asset classes. The latest asset class is managed forex funds, or managed forex accounts. Once considered to be at the highest end of the risk spectrum it now appears they represent a non-correlated, well considered part of a diversified portfolio. - 23310

About the Author:

For more information regarding forex managed accounts. Brendan is also associated with Forex Managed Accounts. Forex Managed Fund Trader provides information and services to people interested in investing in Forex these can be view at Forex Managed Accounts.