While stocks, bonds, and paper investments are becoming more unpredictable, Boron Capital explains why tangible assets are increasingly providing better protection and higher yields, and which investments are the top picks for 2014.
According to Boron Capital CEO Blake Templeton, “All wealth is derived from tangible resources. It’s the same principle as health being optimal the closer nutrients are derived from Mother Nature. Even your iPhone comes from tangible, organic materials to make the final product. I understand that some describe tangible investments as “bubbles”, but what they are referring to is price, not the resource itself. Prices can and will fluctuate, sometimes considerably. It’s all in how the asset is obtained, the price at which it is obtained, where it is obtained and the timing of the acquisition.”
Templeton continued, “When one isn’t limited to the dictation of the stock market setting the price, tremendous profits can be realized, in addition to an advantageous future position. It simply doesn’t make sense how investing in stocks of companies who produce discretionary products will be hedged in a declining economy. When you understand the direction our economy is headed, companies weighed heavily towards discretionary items are just too risky to be tampering with.”
There are three specific tangible investments that Boron Capital suggests as the safest and best return-on-investment picks for 2014 and beyond:
1.) Private Oil and Gas Companies with liquidity in strong markets and proven reserves
As the stock market fluctuates, commodities such as oil and gas are gaining value and are poised to hold their value through 2014 and beyond, despite some expected price movements in the price of oil per barrel in the short run. The Oil Industry was one of the greatest creators of jobs and economic stimulus in 2013, accounting for over 1.7 million jobs, and in 2014, companies are looking to boost production. Texas alone looks to increase to three million barrels per day this year. The Permian Basin in Midland, TX is now believed to hold the second largest oil field in the world. Due to China’s increased oil and gas consumption and conflict in areas of the world that were producing much of the world’s oil, U.S. oil is greatly needed. Oil and gas investments have been generating more interest recently, but that doesn’t mean every investment is equal. There are many variables with respect to the industry and even ‘promising’ companies have failed because they lacked the reserves they claimed to have or the resources to bring it to market. Investing in liquid companies with proven reserves in areas with a surplus of the resource and strong foreseeable longevity is the safest decision.
2.) Private Housing Developments located in sub-markets of Real Estate
Overall, the real estate market is not one to play with, unless the company you’re investing with really knows what they’re doing in relation to the national economy. However, by investing in sub-markets of real estate, you will enjoy some of the greatest protection that is out there from declines in the economy. A sub-market is a market that runs counter to the national economy in a downturn, due to local conditions and industries. Strategic housing developments in 2014 will serve the regions of the country with the most jobs and most stable industries. Some of the U.S. housing markets have experienced asset inflation, reaching levels seen before the recession of 2008, as an indirect result of quantitative easing. Other areas are gaining housing value for legitimate reasons, which makes them a sub-market; namely, they are bringing in all the new jobs for long-lasting economic growth. Companies servicing the strongest industries through housing are more hedged than the companies being serviced, since minor adjustments in their respective industries will not cause them to immediately pick up and move. Ample profits await those who have a keen eye for what to look for. These new arrivals are in need of housing as more and more people flock to these cities seeking employment.
3.) Highly Functional Land within 100 miles of major U.S. cities
Land is the derivative of all real wealth. Modes of transportation and all real estate is built on the surface of land; minerals, precious metals, water and energy are found underneath land; energy is created on top of it; food is grown using it; and technology is created using its resources. Even the oceans, sea life, and animals exist on top of land. So, it’s no surprise that land holds a certain inherent value that other resources don’t have in and of themselves. As early as 1900, wealth was determined by how much land an individual owned, a precious resource many have naively overlooked since the blossoming of the digital age, where people work behind computers versus on a tractor. The earth and the human brain are the two things man was given to work with to create wealth. If you have the knowledge of how to exploit land for its resources and the ability to execute it, wealth is almost a certainty. Take all else away, and you still have land. There has been a trend for the past two years of people anxious to buy land in the country for a home, farm or ranch, and that trend is only increasing as more people grow less confident about the economy. But, this is more than a trend. It represents a legitimate investment opportunity. Most of the top 10 landowners in America are billionaires, and many of them are continuing to increase their holdings year after year, as they see this trend strengthening. Highly functional land that is still accessible to a nearby metropolitan, but with acreage to utilize, build on and farm, will significantly increase in value over the next 5 years.
Boron Capital is a private real estate investment firm based in Mesquite, NV that analyzes conditions affecting the economy and investments. More information about Boron Capital can be found at http://www.BoronCap.com.
CONTACT: Julie Doyle, (806) 787-3876 or media(at)texasda(dot)org