Investment Patterns Changing amid Continuing Turmoil

Article excerpt

Byline: By Steve Pain Acting Business Editor

Gold, agriculture and alternative energy sources are replacing more traditional investments in the current economic downturn, according to a Warwickshire independent financial adviser.

With confidence in the old established markets and the banking sector at an all time low, individuals looking to move away from the exposure of standard equity investments are looking to less obvious investments for better returns.

Nigel Foster, managing director of Stratfordupon-Avon-based independent financial advisers Daly Harvey Morfitt, believes a change in the financial climate - sparked by the credit crunch - is seeing people investing in commodities like wheat and soya, oil and gold, as well as alternative energy sources, rather than playing the FTSE or settling with banks.

In addition, for those with large sums on deposit in UK cash accounts, offshore cash funds are also becoming an attractive alternative.

"A lot of people are very worried about the situation. We have seen a significant rise in calls from local clients worried about their positions, so the message very much at the minute is - don't panic," said Nigel, who lives in the Cotswolds.

"The market is difficult but what that means is that people are taking a new approach to investments and looking at things from a different angle. The world of investment is changing and this is leading to new opportunities.

"Traditional investment through the banking sector is no longer considered a safe bet.

This is leading to markets looking to alternatives like commodities, agriculture, and alternative energy sources, as well as investing in different countries. …