The top insights for investors

Investing

The best time to start investing was two decades again. If you have not already developed a versatile investment portfolio, the next best time to start is right now. But investing has been chalked off as being too hard by most people. So, w hat do you need to know as an investor?

No easy money

There are never any guaranteed returns for investors, even in low risk ventures. Part of what makes investment appealing is the potential for exponential growth, even though not everyone will realize it. The performance of different types of investment will depend with changes to the market over time. For a very long time, monetary policy adjustments and interest rates presented investors with an opportunity for easy money. Through the purchase of investment bonds, investors could literally earn free money as the value of their bonds grew.

The volatile nature of interest rates, culminating in a significant rise at the end of last year caused a massive shift in the value of returns from bonds. This value dropped off so significantly that it could not even compare to the outlay from shared dividends and property rents. With intrest rates still soaring, the market value of these valuable options for investors will continue to fall. Instead of bonds, investors will have to find a new item for their portfolio.

Prolonged volatility expected

Factors that contributed to the market volatility that was experienced for the better part of last year are still in play today. With interest rates still soaring and certain disruptive political figures still holding office, there does not appear to be any rebate to the situation.  Uncertainty, which is fuelled by geopolitical risk, is still a significant market driver around the world. Your sound investment reasoning can be affected significantly by even the smallest of factors, which means that you should expect and prepare for market volatility throughout the year. Part of successful investment involves understanding how these factors may affect your ability to gain returns, and shaping your actions accordingly. By allowing for the volatility of the market, you will be better able to build your portfolio even amidst significantly influential factors.

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