Since 1987 I have been in the Financial Services business.
I have witnessed many shocks in the financial world including the effects of the stock market correction of ’87 and ’89, the impact of the Gulf War in 1990 and the defining Financial Crisis in 2008, the worst since the stock market crash of the early 1920s.
So what can we learn from the last 30 years. Firstly nothing is guaranteed. There is no such thing as a “bullet proof ” investment. Diversification is key in anybody’s portfolio. Your mother was correct when she said “don’t put all your eggs in the one basket” and she probably told you that if something is too good to be true, then it probably is. We don’t have to follow the crowd when they are speculating on the latest craze. Opportunities are always evolving. You can miss the next bus and still get to your destination.
If you do not understand something – do not invest in it. Simple advice, but if investments cannot easily be interpreted or appear too complicated, it may be better to pass. Holding cash sometimes is not a bad idea.
The favourite investments of the ‘80s, ‘90s were Cash, Property and Equities. Mutual Funds today have been replaced by Absolute Return Funds and Multi Asset Funds which strive to product returns using different asset classes within one structure.
An investment is a vehicle that can generate a return on your money. Whether that is a loan note yielding 7% p.a. or buying a range of dividend stocks or investing in an equity deal, it’s all a horse of the same colour.
Do your own due diligence and trust your gut feeling. Moolahinvest will endeavour to provide opportunities globally for the astute investor.
Set your own goals. Do you want 20% p.a.? If so, your risk reward ratio is going to be higher than that of the investor who simply wants to beat cash on deposit.
Try and set your goals to what time frame you have for an investment?
What degree of risk are you comfortable with?
How much of your portfolio are you willing to invest and what assets are you comfortable with?
Moolahinvest hopes to present to you opportunities of investing in a range of different asset classes all carrying degrees of risk. Invest only what you can afford to lose.
Comments