Today, investors have a wide variety of choices for their investment dollars. In addition to the traditional domestic equities and fixed income investments, there are real estate, commodities, and foreign investments.

When deciding on the appropriateness of an investment, investors should evaluate each investment on the basis of potential return for the level of risk inherent in that investment. Is the potential reward great enough to warrant taking the risk? Higher risk investments should offer the potential for higher returns, but as history teaches, this has not been true for all high risk investments. Investor discernment is still a critical component for successful investing.

Below is a partial list of higher risk investments (1) -

• Commodities - gold, silver, oil, natural gas, wheat, lumber...
• Real Estate - commercial and residential; real estate investment trusts.
• Mortgage-backed securities.
• Collectibles.
• Options.
• Currency futures.

These higher risk investments should only be considered by investors who fully understand the associated risks and are willing to experience periods of dramatic price fluctuations. These investments are best suited for those who describe themselves as Aggressive or High Risk investors and have the time to monitor these investments for price and volume changes which can dramatically and suddenly impact market prices.