Portfolio Diversification
Posted by admin on July 27, 2011
A strong investment portfolio should include real property, such as land. Agricultural land has numerous advantages as an investment. It is separate and distinct from other forms of investment such as stocks, bonds, and gold. Because of its intrinsic value and its unique position in the market, land plays a crucial role in many diversified portfolios. Novice and Seasoned investors alike can benefit by adding farmland to their list of assets.
The Role of Land in Investment Portfolios
Arable land is a valuable and stable investment. It complements mutual funds, stocks, and bonds because it reacts very differently to volatility in the market. When the value of stocks falls, demand for land often rises. The negative correlation between real estate and the stock market offers some protection for investors whose portfolios include agricultural land. This general economic principle applies to owners of:
- Crop Farms
- Livestock facilities
- Other agricultural properties
Portfolio diversification is vital in any economic environment. Many economists consider land to be a safeguard against market disasters. People who include land in their investment strategies are better positioned to survive economic pitfalls such as:
- Recessions
- Bubble economies
- Periods of slow growth
Agricultural land's resistance to economic turmoil has made it a time-honored source of wealth. A well-rounded investment package should contain some farming interests. It is never too late to make farmland part of your long-term investment strategy.
Contact Us
At Kuperland , we want to help you enjoy the financial benefits of farmland ownership. We help investors of all levels increase the diversity of their portfolio through intelligent farmland purchases. We are ideally positioned to identify and analyze agricultural land for sale throughout America's heartland. To learn more about the advantages of investing in farmland, contact Kuperland today.