This essay focuses on a tremendous amount of information. we can seek professional assistance. Diversifying across asset classes

a tremendous amount of information

Small Discussion Two questions…

In this digital age we’re blessed with access to a tremendous amount of information, research and tools that can help us to make investment decisions. If we don’t have the confidence to make investment decisions by ourselves, we can seek professional assistance.

Diversifying across asset classes may protect you against underperformance in any one asset class. Your asset allocation will reflect how cautious or aggressive your investment strategy is.

Determine how much of your portfolio you want in each of the asset classes (cash, bonds, property and shares). It’s important to rebalance your portfolio throughout its life to ensure that your asset class weightings continue to be appropriate for you.

Decide what investments you’ll allow yourself to make

Determine the types of investments you are happy to make, and those that you won’t make. For example, will you invest in speculative mining stocks, or stick to big, well-established companies only? You can revisit your investment objectives over time and adjust accordingly with your skill level and risk appetite.

Have a risk management plan – and stick to it

Identify the risks to your investment strategy, and how you’ll mitigate those risks. Risk management is one of the most important steps when establishing your investment strategy.

Some of the tools available include;

• Firstly, Company research and stock recommendations
• secondly, Charting and technical analysis
• thirdly, Economic research
• Further, News services
• Further, Watchlists and alerts
• Lastly, Financial planner or adviser.

1 -As an investor do you agree with the CEO? Why?
2 -Suppose you are interested in high rate of returns but you know with high returns there is high risks. So, what will be your investment strategy? how can you minimize your risk?