5 Tips to Safe Investment in Unstable Market

Global economy has undergone massive disturbance. From subprime mortgage crisis in 2007, impacting not only major monetary institutions in USA. The real impact was on the Composite Stock Price Index on September 9th 2008 falling 42% to 1.641, from 2.830 in early January 2008.

1. Investing Based on the Risk ProfileThere are 3 types of investors: agressive, moderate, conservative. Agressive investors enjoy agressive portfolio development with lower concern on short/mid market fluctuation. This type of investor is suitable in stock investment.Moderate investors put more concern to stable portfolio development and for them, most of the investment can be put in stable instrument with the remaining in stock market.The last is conservative investor. This type of investor put main concern on regular investment return, without market fluctuation. This type should invest their fund in fixed-income instruments. By knowing the risk profile, you can select your suitable investment.

2. Diversifying InvestmentThere is an old saying “Dont put all your eggs in one basket.” Besides knowing the risk, every investor should diversify their investment. If you are an aggressive investor you should spread your investment on many stocks. The easiest way is by purchasing unit-link products, where your investment manager automatically invest your fund in many stocks in various sectors to divide the risk and prevent significant loss in case of unrest in one or more of the sectors.

3. Currency-cost Averaging InvestmentIn unstable market, this type of investment strategy is applicable. By this term, you can take advantage on the drop by still taking investment unit in lower price. Therefore, when the market is stable again, you can gain additional profit.

4. Purchase Investment only fom Reliable Source With various investment products available today, investors must be able to determine the best managers to handle their investment proffesionally

5. Select Long Term InvestmentShort term investments, mainly in stock exchange, can experience sudden drop. However, the long term ones are tend to move within the economic growth and inflation. The investment will grow along with a country economy.

Komentar

Posting Komentar

Postingan populer dari blog ini

Why Men Act "Hot And Cold"

Why is it so easy for other women to fall in love with a man, and for their relationships to effortlessly come together and grow... While YOU keep attracting all the men out there who are "unavailable" or who SEEM great at first, but eventually get scared and just can't go "deeper" with you? Is this "unavailable" thing really a problem so many men are carrying around that gets in the way of love? Or... Could it also be that YOU play a part in finding men who are "unavailable"? Or that you bring about that unavailable RESPONSE inside a man, a response that even the most "evolved" men have lying dormant inside them? I want to share with you what could be a new and enlightening perspective on all this.. There's an important realization all SMART and LOVING women come to at some point in their love lives. It's a "light bulb" that suddenly just turns on... and when it does you instantly g
Baca selengkapnya

What To Do When A Man Withdraws

Love is sometimes difficult to understand and men can quite often be complex creatures for women who love them. Almost every man, at one time or another, is going to withdraw from the woman he loves. There are some definite steps that you can take to draw him closer and to keep from pushing him further away. Relationship advice can be tough to follow and, quite often, amazingly enough, the thing you should do is the exact opposite of what you feel like doing. Relationship problems are a realilty for all of us but the following will help you know what to do when a man withdraws. First and foremost, give him space. It is natural to want to call the man you love or be near him when you think he is going through a hard time. Stop. That's right - simply stop. Men, unlike women, process their worry and anxiety differently than women. It is natural for us to think that his withdrawal is related to us and the relationship. That may be true, but not necessarily. And, even if it is, he need
Baca selengkapnya

Option Market

An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset (a stock or index) at a specific price on or before a certain date (listed options are all for 100 shares of the particular underlying asset). An option is a security, just like a stock or bond, and constitutes a binding contract with strictly defined terms and properties. Option vs Stocks In order for you to better understand the benefits of trading Options; you must first understand some of the similarities and differences between options and stocks. Similarities: Listed Options are securities, just like stocks. · Options trade likes stocks, with buyers making bids and sellers making offer. · Options are actively traded in a listed market, just like stocks. They can be bought and sold just like any other security. Options are derivatives, unlike stocks (i.e., options derive their value from something else, the underlying Security). · Options have expiration dates,
Baca selengkapnya