HOW TO ALLOCATE YOUR PORTFOLIO DURING DIFFERENT FINANCIAL PHASES?
INTRODUCTION:
We invest for many reasons, but however that may be, the end goal is to earn significant returns after considering the various risks faced.
A portfolio-based approach to investing is preferable over simply investing in individual securities; as the adage goes, “Don’t put all your eggs in one basket.”.
Our economy goes through different stages of the economic cycles, where asset classes will perform better or worse comparatively.
In this article, we will examine how the four cycles of the economy affect each asset class and its performance. We will also focus on adapting our portfolio according to the changing economic scenario to maximize our investment returns.
Before diving further, here is a brief explanation of what a portfolio is, the portfolio approach to investing, and economic cycle for the uninitiated:
Read Full Article - CLICK HERE
Comments
Post a Comment