Water – the stuff we often take for granted – has so far been ignored by many investors however interest in this precious commodity is on the increase. So why has it been ignored so far? The first reason is that it isn’t often traded by itself. Many investors also look to the more traditional trades such as oil as these have the potential for big gains whereas water tends to be seen as quite a defensive strategy.

But water really may be a good buy.

Despite living on a planet which is about 70% covered in the stuff, only around 3% of the global water supply is actually deemed drinkable. As the Earth’s population increases, the demand for clean, drinking water is only ever going to go up. The major problem with this is getting the water to a drinkable standard – currently, it is problematic to desalinate water and this means that water is one of the most important resources of today.

It’s not just water that you have to buy either – look for stocks that support water for example water infrastructure or water treatment stocks. And if you aren’t keen on investing directly, there are plenty of funds that have a significant water skew to them. Although this year’s returns don’t look particularly impressive, this is a stock that could do very well in the medium to long term.

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But the fall-out from the global recession has in fact turned out to be nothing like as bad as first predicted and in any case, history itself has proven time and time again that the markets will rebound. Whilst investments in established markets with resilient economies may have for the moment fallen out of favour, there are plenty of buy-to-let investments elsewhere in the world guaranteed to secure rental yields that far exceed annual interest rates. The trick is to search for those emerging markets whose economies are being fuelled by strong manufacturing and service industries, including tourism.

When it comes to spotting those lucrative emerging markets, many investors are turning their attention to Morocco, whose economy has been growing by 4-5% in 2009 thanks to a boom in food production and agricultural exports. Morocco`s reputation as a desirable holiday hotspot has soared along with a growing demand for exotic cultures and good food. The best investments are made off-plan at bargain prices, allowing you to make instant profits when the property reaches completion. It`s a similar picture in Egypt, where hotspots like Hurghada are fomenting tourism with the construction of theme parks, entertainment venues and golf courses. The property market is still in its infancy here, and the value of holiday homes in up-and-coming areas of Hurghada have doubled over the last few years. It`s good news all the way for UK investors, who pay no stamp duty, no capital gains tax and no inheritance tax here.

Back in Europe, after recently signing up to the euro, Slovakia is being tipped as a hotbed of property investment opportunities. Pitched against that magical backdrop of a solid and growing economy, property remains dirt cheap here, so plenty would agree with assertions that prices here are set to grow by up to 150% over the next decade. Further south, investor attention is turning to the potential of Albania, one of Europe`s last remaining undiscovered tourist gems. A great deal of investment has been made by the EU in the country`s infrastructure in recent years, including the construction of a brand new international airport and improvements to the transport network. The capital Tirana has seen the creation of whole new districts with a focus on modern city-centre living and off-plan purchases on coastal properties in resorts such as Sarande are guaranteed to reap high returns and solid letting potential. It`s clear to even the most inexperienced of investors that the potential for growth in the real estate sector in Albania is unrivalled in Europe.

Experienced property investors will normally have funds in place for one or more deposits on prospective investments. If you are in the process of raising a deposit you may be looking for financial deals that will reap high returns quickly, such as foreign currency trading, where rich pickings can be made in a short space of time. One great place to start looking for these deals is the internet, where in recent years sites such as Easy Forex have made the lucrative foreign currency trade much more accessible to the small investor.

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