Protecting Your Investments
Being investment savvy is the best way to protect your investments. To remain financially healthy, study the advice of top investment advisers. One of these is the global bond manager, Robert Kessler. These professionals have been involved in investing for decades. Robert Kessler is often referred to as a contrarian of the Treasury bond market. His investment landscape is based on solid returns over the long term. Thus, he has often been on target with advice to protect investments. Contrary to many Wall Street investment moguls, Kessler believes that interest rates of the US Federal Reserve should not be raised. His is just one of the opinions that also hold that bonds are the safest investments even though they do not bring in the huge ROI percentage of short term and Forex investments. Kessler’s opinion flies in the face of opposition that believes treasury bonds are risky, overvalued and generally undesirable.
Which are Today’s Best Investments?
Most investors put their investment money into stocks. These may be common or preferred stock. Preferred stocks are those stocks sold that can be recalled at any time by the publicly traded company. Common stocks using perform well and offer a higher yield on ROI. Most investors prefer to diversify the types of stocks they hold in their investment portfolios. These investments may include combinations of common stock, mutual funds that invest in securities and bonds. Bond may be treasury, state or municipal bonds.
Know Market Trends
The best investments depend on whether the stock market is “Bear or Bull.” In a Bull market, shares generally rise which encourages more buying. A Bear market means prices have fallen which encourages investors to sell rather than buy. A solidly arranged investment portfolio can be created by diversification so that the investor has a relatively stable financial future.
What Type of Investor Are You?
Your investing style influences the success of your investment portfolio. Many investors prefer a fast turnaround for the money they invest. In this case, they may enjoy a good ROI. They may choose to reinvest good returns in longer term investments like bonds. It’s is also important to understand that faster turnaround in investment returns can have a negative impact should a sudden market trend become a Bear market.
Recently, Christine LaGarde, CEO of the International Monetary Fund (IMF) and Janet Yellen, Chairwoman of the US Federal Reserve, cautioned investors on Wednesday, May 6, 2015, at a gathering of female economists sponsored by the Institute for New Economic Thinking. They stated that stock valuations are “quite high” and that there are “risks” seen “in the equity market.” Check the Wall Street Journal or the Cornelsen Twitter feed daily to stay current on market trends.