Apple – Devan's Blog

Alternative Investments in an Uncertain Market

Investors for decades have said, gold is the investment safe haven. During the 2007 recession, most investment advisers told clients “cash is king.” Even while the markets try to recover, fiscal cliff and other economic worries have dragged down the market, not even exempting technology powerhouse Apple Inc. that has fallen more than 20% from the September peak.

From these uncertain times in the market, investors have taken to alternative forms of investments such as art, real estate, and alcohol. Recently in B.C.’s flagship liquor store located on Cambie street in Vancouver, wine lovers and connoisseurs alike flocked to the store for a chance to purchase a 2009 Bordeaux. It is speculated that this year could be the greatest vintage ever. This is a perfect example of the chances alternative investors are taking. A bottle of 2009 Bordeaux will set you back anywhere from $29 to $4,000!

As well, one of 88 bottles of a rare scotch priced at $33,500 is currently exclusively available at the Cambie store. A large percentage of alternative investors are Chinese that are not only investing in fine wines and whiskeys, but have driven the Vancouver real estate market for years. In a risky market, these investments may be the new safe haven.

Don’t Kick Them, They Aren’t Down!

Often there is a misconception about the relationship between the status and health of a particular company and its’ share price. Ryan Un in his blog recently noted that as Facebook’s share price has nearly halved since its IPO, the company’s revenue’s have also fallen. This could be farther from the truth. Investors had difficulty valuing Facebook, because simply another company of its size, and in this sector of the market does not exist. P/E ratios and profit margins are difficult to compare with other technology companies such as Google and Apple, as they are entirely different.

Facebook’s marketing customers have re-evaluated the relationship, and company’s including General Motors dropped Facebook. General Motors has now come back to Facebook to negotiate a new deal. Since the IPO Facebook has actually increased revenue, and better positioned itself to grow in the future. A new mobile app platform has allowed Facebook to tap into mobile advertising revenue. As well, Facebook most recently launched a gift service that allows users to send items to others users. This service allows Facebook to compete with Amazon and others. Facebook does not need to recover, the company has only bettered itself internally since the IPO!