It is time to look at other ways to diversify your investments,
so the Financial Planners are advising, here in New Zealand. This advice
is no doubt, the same the world over. That is, having part of your
money invested in shares, as we call them in New Zealand, or stocks in
United States.
The world is an uncertain place what with earthquakes, conflicts, rising food prices, falling house prices and fuel prices. Any of these can have an adverse flow-on global effect. So step back and take control. You need to protect your capital by diversifying your portfolio across the full spectrum of bonds, property, stocks and bank deposits to hedge against risk, so when some are taking knocks others can generate income. In other words, no one investment is perfect all the time and by spreading your investments across the board you will better "weather the storm".
The bank interest rate here in New Zealand is now at 4.5%. Apparently that is good compared to other countries. Even so by the time you take off tax and taking into account inflation you are running at a loss here. This is not a pleasant situation. Even so it is important in times of uncertainty to have cash available. Liquidity is vital in times of crisis. It is advisable then to have a minimum amount on call and the rest on term to maximise the investment.
Many investors panicked and sold out left when the markets went down in value so now could be a great time to get aboard.
Over all, potential investors are inclined to worry more about the volatility of share markets than they do about inflation. There is no doubt the constant ups and downs can be unsettling but over the long-term the markets have done okay. The past year has seen growth in share market indices, from markets such as United States, Australia and here in New Zealand. These have risen by about 13%, 14% and 7% respectively. These returns should be enough enticement to encourage you to take the plunge and start investing.
Stock trading online allows you the opportunity to invest not only in your own country but across the world market in real-time. To get going it is advisable to start small with a minimum amount of investment. Then you will learn about the marketplace as you gain confidence within your financial comfort zone.
The world is an uncertain place what with earthquakes, conflicts, rising food prices, falling house prices and fuel prices. Any of these can have an adverse flow-on global effect. So step back and take control. You need to protect your capital by diversifying your portfolio across the full spectrum of bonds, property, stocks and bank deposits to hedge against risk, so when some are taking knocks others can generate income. In other words, no one investment is perfect all the time and by spreading your investments across the board you will better "weather the storm".
The bank interest rate here in New Zealand is now at 4.5%. Apparently that is good compared to other countries. Even so by the time you take off tax and taking into account inflation you are running at a loss here. This is not a pleasant situation. Even so it is important in times of uncertainty to have cash available. Liquidity is vital in times of crisis. It is advisable then to have a minimum amount on call and the rest on term to maximise the investment.
Many investors panicked and sold out left when the markets went down in value so now could be a great time to get aboard.
Over all, potential investors are inclined to worry more about the volatility of share markets than they do about inflation. There is no doubt the constant ups and downs can be unsettling but over the long-term the markets have done okay. The past year has seen growth in share market indices, from markets such as United States, Australia and here in New Zealand. These have risen by about 13%, 14% and 7% respectively. These returns should be enough enticement to encourage you to take the plunge and start investing.
Stock trading online allows you the opportunity to invest not only in your own country but across the world market in real-time. To get going it is advisable to start small with a minimum amount of investment. Then you will learn about the marketplace as you gain confidence within your financial comfort zone.
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