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New world image, the times are changing: Are you diversified enough?

Author: Jerry Terrizo
by Jerry Terrizo
Posted: Oct 05, 2013

The old industrial countries groan under the financial crisis, the young’s are up and coming emerging countries are conspicuous by their growth and solid budgets. They now invest only in government bonds with high credit ratings as investors in response to the current situation. Negative real interest rates in such situations can be avoided through diversification. These are offered different strategies.

Fixed-income solutions: Investors should invest in bonds, which benefit from the growth of the emerging markets with a high interest rate premium. By risk premia, real interest rates develop to positive rates. These include corporate bonds, high yield and emerging market bonds.

Commodities and stocks: In the course of inflation and an overheating of the economy associated benefit real values such as equities, commodities and commercial real estate by increasing their demand. Shares, are especially interesting on high dividends make sure to earn it as a respectable coupon.

A diversification of investments - asset classes and regions - contributes to better prospects, take advantage of market opportunities and mitigates risks; already the old stock market adage says "Put all eggs in one basket."

With a flexible investment mix, aligned according to the preferences and risk preferences of the customer, experienced Fund Manager’s return opportunities in all classes and with which one can exploit and respond to international trends and risks. Using an active asset management, also safety-conscious investors have the opportunity to benefit from a broader diversification with an improved ratio of risk and return. Last but not least, also investments in emerging markets are the future for the Americans and they should win on appeal.

There are strategies to adapt as an investor on the changing capital markets and to take advantage of the new investment opportunities. Aim must always be to generate high real interest rates or to get at least the purchasing power as a minimum objective. The immensely increased market volatility in recent years is a big concern to private investors and provides investment advisors great challenges.

Searching for Investing Solutions or Financial Planning Advice? Diversify your portfolio with the help of Diversified Investments LLC, founded by Joshua Just.

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Author: Jerry Terrizo

Jerry Terrizo

Member since: Sep 16, 2013
Published articles: 1

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