Hypo Venture Capital Seizing Opportunities in Tough Economic Times

Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

Many of us have concerns about staying on track in these uncertain economic times. Mounting layoffs, plunging home values and declining stock prices all have a way of generating fear and uncertainty.
"Even though things look bad sometimes, you need to remain focused on opportunities," says Andrew Bradley, HVC’s chief investment officer. "We like to say there's opportunity in every market."
Today's investors face unprecedented challenges
2009 got off to a rough start, with the economy and financial markets still reeling from last year's credit market meltdown and resulting financial crisis. The markets traded down in a painful, correlated fashion, while economic activity plunged.

But since the end of the first quarter, signs of improvement have emerged. The equity market has enjoyed a meaningful rally since mid-March, led by the financial and consumer discretionary sectors. There is still have a long way to go before things get considerably better and before the economic picture brightens considerably but overall the worst may be behind us.

Hypo Venture Capital Asset Allocation: A Sound Investment Strategy Part 2

Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.



In today's complex financial markets, you have an impressive array of investment vehicles from which to select. Each investment also carries some risks, making it important to choose wisely if you are selecting just one.

The good news is that there's no rule that says you must stick with only one type of investment. In fact, you can potentially lower your investment risk and increase your chances of meeting your investment goals by practicing "asset allocation."



Asset Allocation Can Work

For instance, at age 25 you may decide to invest with the goal of retiring in comfort within 40 years. Most likely, your investment goal is to achieve as much growth as possible — growth that will outpace inflation substantially. In aiming to reach this goal, you may allocate 70% of your assets into aggressive growth stocks, 20% into bonds, and 10% into money market instruments.

Hypo Venture Capital: How Much Money Is Needed for Retirement?

How much money a person needs for retirement depends on a variety of factors including desired lifestyle, location, retirement age, anticipated social security payments, and perhaps even medical needs. While some experts predict a person may need anywhere between $850,000-$1.5 million to retire comfortably, the amount is different for everyone all over the globe.
In order to determine exactly how much a person needs for retirement, numerous retirement planning and financial websites feature retirement calculators. Using a retirement calculator, the person enters information including desired retirement age, expected social security payments, current age, current annual income, and life expectancy. The results show the total amount of money needed to retire comfortably factoring in inflation.

Hypo Venture Capital Asset Allocation: A Sound Investment Strategy Part 2

Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

In today's complex financial markets, you have an impressive array of investment vehicles from which to select. Each investment also carries some risks, making it important to choose wisely if you are selecting just one.
The good news is that there's no rule that says you must stick with only one type of investment. In fact, you can potentially lower your investment risk and increase your chances of meeting your investment goals by practicing "asset allocation."

Asset Allocation Can Work
For instance, at age 25 you may decide to invest with the goal of retiring in comfort within 40 years. Most likely, your investment goal is to achieve as much growth as possible — growth that will outpace inflation substantially. In aiming to reach this goal, you may allocate 70% of your assets into aggressive growth stocks, 20% into bonds, and 10% into money market instruments. You have years to ride out the wide fluctuations that come with stocks, but at the same time, you potentially lower your risk with your bond and money market holdings.
Because your goals and circumstances are unique, you may want to talk with an investment advisor who can help you tailor an allocation strategy for your needs. Generally, your asset allocation will change as you reach different stages in your life, as your investment goals also change along with these shifts in lifestyle.
If you have been investing aggressively for retirement for more than 20 years and are now less than 10 years from retiring, protecting what your investment may have earned from market ups and downs may become more important. In this case you may want to gradually shift some of your stock allocation into your bond and money market holdings. Keep in mind, however, that many financial experts recommend that stocks be considered for every portfolio to maintain growth potential.
A Simple Process, Some Dramatic Potential Results
Asset allocation is a simple concept, yet vital to long-term investment success. In fact, a landmark study cited in Financial Analysts Journal shows that about 90% of the variability of average total returns earned by balanced mutual funds and pension plans over time was the result of asset allocation policy.3 For many individual investors, the asset allocation decision amounts to choosing what types of mutual funds to invest in and the amount to invest in each type of fund. Others may want to add individual securities to this mix after exploring their investment options.

Hypo Venture Capital: Try Investing in Foreign Markets for Exceptional Profits

Foreign markets are often referred to as emerging markets if anything, but the European market is included. Foreign stock markets have been offering larger returns than the U.S. stock market for most of this decade, partly because they start out at a lower base. Investors exposed to foreign market growth potential of the emerging countries, can hop on the high-return gravy train, so long as they avoid the ride off the cliff that has happened frequently with emerging market stocks.

Dynamic Wealth Management - Foreign Markets Include BRIC and Feeder Countries
Some of the foreign emerging market countries include Brazil Russia, India, China, Vietnam, Taiwan, Israel, and even New Zealand and Australia can be included. Part of the attraction of several of these countries is that their overall market value is significantly lower than the US market value. For example: trading a five dollar stock can offer larger percentage returns based on a given capital investment than a $50 stock because of the nature of larger numbers versus smaller numbers.

Smaller numbers can increase more rapidly on a percentage basis than larger numbers with a given level of investment. This fact alone allows emerging markets to offer larger percentage returns. For example, the entire US stock market is valued over $21 trillion, where China's entire stock market is valued at approximately $1.6 trillion. For a $21 trillion market to double in value to $42 trillion is a significantly more difficult feat than a $1.6 trillion market doubling to $3.2 trillion.

DynamicWManagement: Foreign Emerging Markets with Manufacturing and Agricultural Power
Meanwhile the emerging countries all have significant agricultural production as well as growing manufacturing production. The level of absolute production is not as critical as the growth rate of the production of various industries, both agricultural and manufacturing; because stock markets in a foreign market or an emerging market are a future predicting device.

Foreign emerging markets offer significant profit potential in the stock arena because their populations are growing, often at a rate double or triple of the developed Western world, with the exception of Russia, also because they are manufacturing and growing agriculturally. Brazil, for example, has become one of the leading producers of cotton, corn, and soy even displacing the U.S. in some markets.

One of the challenges of investing in emerging markets or foreign markets is that these markets have significantly higher market volatility or risk. One method mitigating this risk is to employ 15% stop loss, in all market investments. With this stop loss used for foreign market investing the tremendous profit potential can be enjoyed while limiting the eventual crashes that afflict foreign emerging markets frequently. Additionally, currency losses used to be a common problem with foreign market investing. The dollar for instance has been sliding against most currencies, the value of the foreign currency has added to the returns on foreign market investing. Ultimately, depending on which markets you are investing, with currency fluctuations it is possible to make money both on the investment and on the conversion back to your own currency.