Investment Strategies for insecure times
The volatility experienced by markets in 2008 in particular has been severe, but it is not unprecedented. Throughout the economic history, investing especially in equities has required a long term approach to achieving long-term goals.
Why long term
- Remember that investing is for the long term, especially when market conditions are not favourable
- Consider your investments in relation to your financial goals; do not try to time the market
- Stick to your personal investment objectives and stay invested
Asset Allocation
- Spread your money across different types of investment such as cash, bonds, equities, commodities and real estate
- Invest in a wide range of different countries, Europe, US, Emerging Markets
- Invest in small, medium and large cap companies
- Invest in bonds with various maturities
- Invest in a broad range of sectors
- Rebalance your portfolio at least once a year
Why cash is not a good alternative
- Remember that your purchasing power is eroded over the years by inflation
- Watch out for interest rates, on the short term they look stable, however over the long term they have proven to be volatile
- Cash is at the bank and is only guaranteed to a certain amount
Advantages of Monthly Savings
