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Even before the global financial crisis exposed the flaws of our investment system that stresses profit-at-any-cost, there was a movement that focused on building resilient, sustainable, and healthy communities. Now there is a way for individuals to put money into the local economy. An asset class new to Texas: investing in animated films and television cartoons.

Animated movie projects-The emerging asset class

We all hear the constant mantra of “diversification” from financial professionals and the business press.  However, most investors (as well as their advisors) consider diversification within their portfolio to be a variety of holdings in different traditional financial instruments whose returns and risks are still in some way tied to the financial markets and the overall health of the domestic or global economy.  Whether invested in stocks, bonds, variable annuities, or real estate, most investors have taken huge hits to their portfolios during the past two years – even if they thought they were adequately diversified.

In these uncertain times, many investors have simply turned to holding cash or classic “safe” investments such as CD’s, money market accounts, or U.S. Government securities.  While these investment options also aren’t truly diversified from market conditions, they do at least offer a modicum of safety.  Of course, the downside is that they usually offer paltry rates of return.  While these types of safe investments are occasionally advertised with rates as high as 3% or 4%, this is all too often an introductory rate that will eventually decrease once the initial honeymoon period is over.  It is more common to find rates in the 1% or 2% range, or even lower for U.S. Treasuries. Thus, the price of “playing it safe” is a low rate of return that may not even keep pace with inflation.

So where does this leave the investor that wants true diversification from their traditional holdings while still retaining the potential for a reasonable rate of return?  There is a new alternative investment option with these characteristics that a growing number of investors are taking advantage of: animated movie projects.