Investment Strategies

Written by Josh Dodes
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If you are wise enough to be planning ahead for retirement, you are likely well aware of the two fundamentals of sound long-term investment strategies: diversify your holdings, and stay the course. While mutual funds and hedge funds have long offered investment strategies that essentially obey these fundamentals, it is only since 1998 that smaller investors have had the chance to take advantage of perhaps the most fundamental-driven funds of all: forex funds. Indeed, the forex is a veritable case study in combining aggressive long-term growth and minimized risk.

While most mutual and hedge funds diversify holdings to dilute risk, they typically do so on an intranational basis. However, even broad cross-sector diversification cannot protect such funds from the type of economy-wide volatility recently seen in US markets. Happily, by trading international currencies, rather than intranational securities, the top forex funds can offer an additional layer of protection in the face of a given economy's cross-sector troubles.

Investment Strategies for Life

In internationalizing risk diversification, forex funds also make it easy to stay the course for the long-term. After all, regardless of an individual economy's volatility, the global market will ultimately experience reliable long-term growth. While no investment is without risk, investment strategies tied to global economics offer a unique opportunity to tie the growth of your money to the growth of the world's economy.

Finally, of course, a forex fund--like any aggressive fund--is only as good as its research. Fortunately, the top forex firms have placed a significant premium on developing world-class analytic tools. As such, it is no surprise that even the most conservative investors have become increasingly comfortable putting their money in these firms' capable hands.


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