Professional Investing for the Not-so-Dummy
The financial markets have been skittish for years now, with critical scenarios occurring one after the other. Now more than ever, building your money-management skills is vital, so you can protect your hard-earned capital from the many challenges that threaten your finances.
You still have room to grow your investing skills, even if you already are a not-so-dummy investor. And that’s the objective behind our following four tips , each of which will take you a little further ahead on the road to becoming a financial world expert.
- Get your money off the bank:
Sadly, when people think about investing, they first think about putting money into a savings account. More than $6.8 trillion re currently sitting on savings accounts, short-term deposits, and money market funds, according to the Federal Reserve.
And some of that capital is right to sit where it is. It makes a lot of sense to use savings accounts and other instruments to hold money for urgent expenses, as well as to have cash available for big plans on the short to mid-term.
It’s too easy to let short-term savings to become a long-term habit. But, with savings accounts paying interest at 1% or less — they are not a viable way for true visionary investors to accomplish their financial goals.
- Develop your own style and try it out
The moment you get your investment bearings, you will find that you prefer some stocks above others. For example, if you foresee another economic downturn, then you might prefer investing in value or defensive stocks, which wield downside protection and can tolerate sales and earnings declines while performing better during a recession; but are not as appealing as growth stocks, which experiences higher returns during a booming economy.
Or, if still you’re not comfortable picking stocks, then try out emerging industries like fintech. The Financial Technologies sector, or fintech, is an industry that’s getting more and more notoriety across the world since it has made a big difference -since the adoption of online banking until the creation of blockchain technology- both in people’s way of doing business and in their day-today life.
- Discover a company you’ve never heard of.
Well-known companies are usually easy investments, but they aren’t always the ideal ones. You’ll gain better returns by spotting companies that fewer investors know about yet.
The evident place to find unknown stocks is on new markets and start-up companies. For example, Konzortia Capital, a holding for a consortium of fin-tech companies that have created a different type of equity a New Asset Class (NAC) with special features that mix the advantages provided by stocks of a private company with the liquidity of shares traded in a traditional stock market. This is a big deal for not-so-dummy investors wanting to achieve visionary’s status.
- Make your strategy match your objectives
You need to know how to shuffle your investments once you have them. For example, if you’re saving for future projects, this could translate to great tax advantages and turning what you spend into a bigger short-term financial impact than what you’re investing in. On the other hand, if you’re keen on foreign you need to include on your investing strategies the currency trade fluctuations for said stock. So, as a general rule, you must ensure you’re building the right financial framework for your strategy by making the right choices.
On this last example, Konzortia Capital -through one its platforms, InveStart- is intent on building a vision of a globalized stock market of tradeable securities issued by companies from anywhere in the world, and all trading under Koura as the transactional currency; which up until now wasn’t possible, not even in sci-fi movies.
This way, you don’t have to factor in any currency fluctuation on your investment strategy
If you’ve stayed this far, you know that when it comes to the investing, you never know enough. Knowledge is power and many people are already well ahead of you. But, with our advice you can expect to earn the benefits of our financial savvy.
Remember, it’s potentially more profitable to go with complex, disruptive and unique products from emergent markets companies like the before mentioned company, Konzortia Capital. And if you’re still not excited about every they’re offering, you should be. Follow the link and learn more about them. Theirs is an opportunity for visionaries only!