Talk to any group of investment advisors and you’ll soon discover that even the experts don’t always see eye-to-eye on everything. But one thing almost all will agree on is the benefits and safeguards that come with asset diversification. It’s a principle found in the old English saying, “don’t put all your eggs in one basket”, and is followed by investors on Wall Street, superannuation funds in Australia and mum and dad investors in the Philippines.
In a report by Reuters, the country’s gross domestic product suffered its biggest slump since 1981 at 16.5% in April and June of this year. Although a lot of government efforts are implemented to alleviate Filipinos from poverty, there is a lot more we can do to prepare for the worst impacts of the economic downturn.
Checkout the following tips so you can protect yourself from the current economic downturn.
It’s totally normal to feel a sense of excitement when your investments are doing great, or anxiety when they’re going the opposite direction.
What you want to avoid, however, is making illogical and irrational decisions led by the moment’s emotional outburst such as selling your stocks too soon, or putting too much of your money in one investment vehicle.
We all know that investments come with risks. As American entrepreneur, Robert Arnott said, “In investing, what is comfortable is rarely profitable.” For instance, you can always put your money in the bank. You know you won’t lose anything. Your money’s safe! But, you also won’t be gaining a lot from it — aside from the meager interest of course. Or, you could invest it in stocks where there is a risk of you losing some money, but also a possibility of gaining a lot depending on how the stock market moves.
How Do You Grow Your Money, Keep It Safe, and Avoid Stress? Keep reading and you’ll learn two simple ways to do it.
Let us set aside money for the moment. I personally believe in taking a holistic approach to investing. Today, we’ll focus on the most important asset of all – YOU – and identify ways grow this asset over time so it pays dividends over and over again.
Here are other things you should be investing as well.
- Invest in Good Health
- Invest in Inner Peace
- Invest in Knowledge and Wisdom
- Invest in Good Relationship with Other People
- Invest in YOU