New investment opportunities continue to attract the attention of investors all over the world. Increasing awareness on climate change, economic regulations, changing trade standards create new investment opportunities. Business owners who are ambitious about diversifying their portfolio seeking ways to explore the potential benefits of investing in new markets.

Recent developments in Bitcoin system, for instance, seems to be some of the biggest investment opportunities for making money.

More specifically, given the steadily aging population of Germany and lack of sufficient public investments, care home investments offer attractive investment opportunities for investors in Germany.

The German care homes industry rapidly grows due to the permanent increase of people in need of long-term care. Public providers cover 5% of the market, 35% is covered by private providers, and the rest is provided by charity-based and religious non-profit organisations. All these providers draw their revenues from a mixture of a mandatory national care insurance, and personal contributions or social welfare support.

Analysis reveals that prices and quality vary across countries and federal states. Also, quality of services and prices correlate positively.

However, investment from abroad is quite complicated as the German market is highly political and the market is heavily regulated. Still, since the nation’s older population is growing quickly and the demand for care homes is expected to continue, it is highly likely that more investors would enter this market in the years ahead.

Profit follows risk, which means any profitable business involves considerable risk. You would choose your investments based on your risk profile which determines how much risk you’re willing to take.

Determine what sort of returns you expect. If your finances tolerate the volatility of your portfolio, and you’re willing to take on more risk you’ll select more aggressive investments. And you would monitor your investment plans to evaluate your progress and make sure you are performing in accordance with your goals, and make necessary adjustments when your plan requires any alterations.

Hedging

Hedging is a risk management strategy applied to limit or control the likelihood of loss from fluctuations in the prices of currencies or commodities. In other words, hedging is a transfer of risk made through various financial instruments such as forward contracts, futures, options or swaps.

Consider that export sales of a company consist half of its entire revenue. In this case, given that foreign currency is an essential source of revenue for this company, there would be a risk of gains or losses from foreign currency fluctuations. In order to limit any potential loss due to fluctuations in currencies, the company may take following actions:

• Entering into an agreement with a bank and sell their foreign currency at a fixed rate,
• Building its own manufacturing facility in the foreign country that it sells its products to avoid currency risk,
• Receiving the payments in its home currency.

In doing so, a company can hedge a potential risk with the best available option according to its resources and restrictions.