{"id":55756,"date":"2014-08-11T02:45:12","date_gmt":"2014-08-11T06:45:12","guid":{"rendered":"http:\/\/countingpips.com\/?p=55756"},"modified":"2014-08-11T02:45:12","modified_gmt":"2014-08-11T06:45:12","slug":"how-you-can-make-money-from-the-future-of-growth","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/how-you-can-make-money-from-the-future-of-growth\/","title":{"rendered":"How You Can Make Money from the Future of Growth"},"content":{"rendered":"
August 11, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

Last week I showed just how easily you can make big money investing in small-cap stocks<\/a>.<\/p>\n

The small end of the stock market is chock-full of fascinating businesses. <\/p>\n

And if you want to profit from the most exciting trends sweeping the economy, there’s no question…small-caps are the place to be.<\/p>\n

Whether it’s keeping China’s middle class fed and entertained, or developing the tech<\/a> to serve Australia’s ageing population…if there’s an economic shift in the works, you can bet there’s an Aussie small-cap stock out there working hard to profit from it.<\/p>\n

Stockbrokers at the top end of town would prefer that you didn’t know this…but the large-cap stocks they love to funnel you into just don’t expose you to those exciting themes.<\/p>

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These ‘big name’, lumbering companies clutter far too many portfolios. They might even be cluttering up yours.<\/p>\n

Companies like this are a stockbroker’s dream. They’re dull as dishwater, and their stock prices tend not to move around much.<\/p>\n

That means the broker runs less risk of actually helping you make any profit. Remember, your broker doesn’t get rich when your shares go up in value. He only earns money if he can convince you to buy and sell stocks.<\/p>\n

I should know. I used to work with these clowns in London, Sydney and Melbourne. They love to churn through large-cap stocks. It’s the same story everywhere.<\/p>\n

Remember: the fat cats on Collins St and Martin Place just want control of your money. They want you to leave it with them and forget it.<\/p>\n

And if you fall for their flim-flam, it will keep you at the bottom of the financial food chain for the rest of your life.<\/p>\n

I want you to avoid that dangerous trap. ‘Big name’ stocks stunt your portfolio’s growth. And mark my words…you’ll never get rich investing in companies like that.<\/p>\n

So if not the big, boring large-caps, what kind of companies can make you rich?<\/p>\n

Well, locking onto the big trends reshaping our economy is a good start.<\/p>\n

But even though you might seek fortune in the small-cap sector<\/a>, it pays to think big — beyond those economic trends, to an even higher level.<\/p>\n

I’m talking about riding a wave of investment not just in a company, but in an entire asset class.<\/p>\n

I got a valuable reminder of this just a few days ago.<\/p>\n

You can improve your decision-making by keeping an eye on where the big fund managers are moving their bets.<\/p>\n

And Australian fund managers don’t come any bigger than the $101 billion Future Fund.<\/p>\n

The Future Fund gave you a rare hint last week about where it will direct its fund flows. And the hint came from no less an authority than the fund’s chairman, Peter Costello.<\/p>\n

The former federal treasurer gave an interview to the Australian Financial Review.<\/em> He said the Future Fund is looking to its alternative asset holdings to drive returns.<\/p>\n

By the way, an alternative asset is anything that lies outside of the traditional cash, bonds and shares. It includes assets like farms, commodities, real estate, private equity and venture capital.<\/p>\n

Mr Costello said:<\/p>\n

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‘We’ve got to think about where drivers of return are going to be, and we’ve spent a lot of time thinking about that.<\/em><\/p>\n

‘If it’s not going to be US equities, you have to look at other things. And as I said, we’ve got a big private equity portfolio, we’ve got a big infrastructure portfolio, we’ve got an alternates portfolio.<\/em><\/p>\n

‘We focus on them all the time. I am not sort of flagging how we are going to move our asset allocation but I am just saying we do focus on them all the time. We’ve got big allocations at the moment.<\/em>’<\/p>\n<\/blockquote>\n

You can think what you like about Mr Costello’s stewardship of the Australian economy<\/a> last decade. But you can’t deny that the man understands funds management.<\/p>\n

You see, investments…like so many other things in life…run in cycles. <\/p>\n

If you can pick an important cycle just as it’s ramping up, you can make a killing.<\/p>\n

That’s why, back in May, I recommended that my readers of Australian Small-Cap Investigator<\/em> buy shares in a company that’s perfectly placed to make that killing.<\/p>\n

Most Aussies have never heard of this small-cap stock. But that will change…sooner than you think. Owning shares in this company is the best possible way for you to benefit from the rise of alternative asset classes.<\/p>\n

To be clear, I’m not suggesting you should directly invest your cash in farms and early-stage start-ups. This company offers diverse exposure to a range of alternative assets, through one easy-to-buy ASX-listed stock<\/a>.<\/p>\n

I’m betting that the Future Fund and its peers will get more excited about these kinds of assets and the returns they offer. As that happens, the stock I’ve tipped should enjoy major fund inflows.<\/p>\n

I can’t give away the stock’s name in Money Morning<\/em>. That would be unfair to my Australian Small-Cap Investigator<\/a><\/em> subscribers.<\/p>\n

But because this is still only a small company, its runway for growth is long.<\/p>\n

It’s a great way to gain diverse exposure to the kinds of assets for which Mr Costello forecasts big things.<\/p>\n

And that’s at the heart of making money from the stock market. <\/p>\n

Ignore what shares the fat cat stockbrokers want to stuff down your throat. Think about the massive trends that shape our financial system…and look for the stocks best-placed to cash in.<\/p>\n

Tim Dohrmann+<\/a><\/strong>
\n Small-Cap Analyst, Australian Small-Cap Investigator<\/em><\/strong><\/p>\n

Join Money Morning on Google+ <\/u><\/a><\/strong><\/p>\n

The post How You Can Make Money from the Future of Growth<\/a> appeared first on Stock Market News, Finance and Investments | Money Morning Australia<\/a>.<\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au Last week I showed just how easily you can make big money investing in small-cap stocks. The small end of the stock market is chock-full of fascinating businesses. And if you want to profit from the most exciting trends sweeping the economy, there’s no question…small-caps are the place to be. Whether it’s keeping […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-55756","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=55756"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55756\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=55756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=55756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=55756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}