Time is uncertain. Be careful with long-term investments

Investors have always paid for one of the best ways to evaluate a dispute. Of course, this is also true below, but the investment should have been chosen more carefully.

In the last ten years, the team has been able to honor itself as a good investor. The prices of financial assets grew and by a percentage of the year and the time-built portfolio of investments with a medium risk far outweighed the appreciation of banking income.

Stocks, commodities and their derivatives were highly profitable, so funds were caught. We could talk about property prices, which in uritch localities have grown by hundreds of percent. Conservative investors, preferring security, have had to settle for far-reaching returns in recent years. The difference between haste and non-haste was thus in vi profit and the word “loss” disappeared from the memory of the investor.

How did investors in the Czech Republic do?

The average growth of the stock market crack in the most likely period between 2002 and 2007 was equal to thirty percent. The PX stock market crash hit a similar level last year as well, when it improved its performance in the spring and summer. It is not about growth built on healthy foundations that the balance was not more than 50% of the loss from 2008.

Since the arrest of the crisis, the position of housing investors has deteriorated sharply. The rise in apartment prices was up to the end of 2007 at a percentage of the year, depending on the location, and the Czech real estate market was among the fastest growing in the world.

Although commodity markets are not as popular among Czechs as stocks and real estate, they also offered very high returns. Just remember the oil for $ 150 and the darkness of four thousand crowns at the gas stations. From the investor’s point of view, it was a very pleasant period.

Crisis zamchala cards

The crisis has changed this atmosphere and, despite a slight correction in the financial markets last year, it is far from close to last year. The gains of world stock indices have been firmly in exchange since the beginning of the year. Absolutely most commodities except precious metals fall.

The real estate market in the Czech Republic, which has been going in relative terms compared to the USA and Spain for a relatively long time, has still not bottomed out. So what to do with the disputes when the most profitable investments of recent years fail in the new conditions?

The global uncertainty in the financial markets is still high and optimistic forecasts of economic growth are gradually taking for granted. At the same time, efforts to reduce budget deficits may result in a slowdown in further economic growth. The first development of the economy has a major impact on the price of most financial assets. Without the growth of economies, the profits of a company and therefore not their action do not grow. Weak demand for komoditch did not lower their price.

The emphasis is on stable investment and investment horizon

Because economic development is uncertain, it is good to have such investments in your portfolio, their price is stable and not affected by economic development. Thus, there is an investment that directly benefits from economic uncertainty and decline. Gold is one of them. Thanks to its inverse movement towards most other financial assets, it can function perfectly as a bond of existing investments.

It is worth mentioning that the products guarantee the original deposit, and this is a guaranteed share of funds or investment certificates. Ten percent profits cannot be expected, but even sharp declines should not affect the investor.

With the change in the investment environment, it is so good to think about the investment horizon. Regular economic cycles have disappeared in recent years, and with them the recommended times of margins of financial instruments. The situation has become confusing and the first entry into the market needs to be timed, and it is both shares and real estate. The purchase of individual instruments is always decided by the view of further economic development.

Optimist bets on cyclical stocks and commodity industries. The portfolio would thus certainly turn into real estate. Most of the professional public are currently cloning to a negative view. In this case, gold clearly leads.

Until recently, such bonds were attractive, but after the debt problems of some European countries, they cannot be considered a conservative investment.

Even investing in real estate does not seem as safe an investment as it has in the past. Still keep in mind that the bottom is just in front of them.

Choosing the right investment is not easy at all, even given the variety of experts. Each investor should know in advance for and for how long he enters the market. Investments cannot be made without thinking.

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