We all know that almost every part of the World is facing a major financial crisis. Globalization has many good things, but menaces and real problems like this financial crisis can have a big effect in the globalization era we live in. The uncertainties and problems we now face, makes us feel as if all we had taken for granted is now quickly slipping through our fingers. It is natural to have even a expert investor’s confidence shaken, in dark times like these.
It is natural to think that working diligently, saving money and investing wisely will ensure a future of financial security; we are taught this from a young age – to save and be ready for harsh times. Nevertheless, when times like this hit us, and the amount of money we have left grows less and less, day by day – where does one invest? …And is this even a smart move?
Investing, by definition, inherently involves risk. After all, you are putting your money on the line in hopes of making some kind of profit. Still, a financial crisis, like the one we’re all facing now, implies that the shadow of uncertainty is cast on every minute activity of the marketplace: how long the financial crisis’ cycle will last; the costs it produces; and which companies will prevail in its wake. In times like these, the financial realist (if he’s smart) doesn’t concern himself with if he’ll get hit – but concerns himself with when he’ll get hit.
More than ever, it is vital for you as an investor to be highly informed: read newspapers & specialized magazines; do your own research on companies – what are the stronger sectors nowadays; make a long-term plans; and, if possible, pay off some outstanding debts to collectors like Arrow Financial Group. Not all is dark in tough, uncertain economic times, and (if you’re smart) crises can mean outstanding revenues – provided you are well positioned, informed and patient.
One of the things we can say for sure, is that most of us as investors (probably due to our natural fears) hardly ever invest long-term. Rare is the person that invests in a 10-year fund and leaves their money there for the actual 10 years! This translates into major losses. Imagine you invested $100.000 in an American equity mutual fund. If you really allowed the money to stay there for the full 10 years, after which, the principal amount would have accrued to approximately $220.000 – the average return, calculated after 10 years, is 8.18%! But studies show that most of us will take the money out of fund long before the 10 years are up, which can mean a loss in returns, for at least $30.000!
So, the first financial tip: If you are like the average investor and your fears tends to take over, choose equity funds with smaller time spans; and just let your money stay there for the defined period of time. Other than that option (mainly due to the fact that in times of crisis the best investments are the long-term plans), here are some other good pointers that you can find useful: do a portfolio with a mix of investments. Precious metals, such as gold and silver, also face the fluctuations in the marketplace; but the reliable thing about them is that they rarely drop in a permanent way.
Precious metals can be bought at a low price, and as the markets start to pick up, their prices go up and you can sell them & make a nice profit. Be sure to deal with certified precious metal dealers, as novices have been known to go deep into debt after being swindled; If you find yourself in the middle of an Lvnv Scam, as a result of this – you may need the help of credit repair professionals. Other very lucrative investments these days, are in foreign exchange; even more so, in times like these – now we have deflation & the real value of currency increase! To do it better, you can always get foreign exchange trading software, which will help you keep track, in real-time, of the current on-going rates.
Here’s a very important thing to keep in mind: Times of crisis demands that one becomes more astute, in order to capitalize. It is essential that you make sure you have sufficient savings. You really need to have money at your bank to last for more than a year, no debts, and do not invest all your money; this is the only way to make sure that even if you lose, you and your family will be safe.