Financial expert Alex Merck shares his experience. Mr. Lawn idea Merck - the market is not as trivial as it try to present various unscrupulous consultants.For example, if you have today in the portfolio of stocks and bonds, it does not mean that your portfolio is diversified - on materials AMarkets.
Because stocks and bonds over the last year and at the start of 2016 often moved in close correlation with each other. In this scenario, the diversification may not be considered. Currently, stock prices sank by around 10% from their highs of 2015. Merck offers special attention to the following points:
* If your portfolio has a conservative structure of 60/40 - 60% of the shares and 40% bonds, which means that 60% of your portfolio - assets with the highest risk. It would be good to review the structure of the portfolio, reducing the amount of risk. The current volatility of the shares substantially above the historical norm.
* If you are advised to "stay the course" on the background of strong market turbulence - do not listen. Because it is a path that will lead you to losses. We can not ignore the realities and adjust to them, pretending to be your hut on the edge. Look - both behaved your portfolio in the first days of January? This is the question the quality of diversification. If the portfolio follows trends in key indices - with difersifikatsiey clearly a problem.
* A good investment plan - a maximum of flexibility. The average investor is difficult to be flexible - t. To. Have to constantly revise the strategy that creates a sense of instability. Roughly speaking, you can not buy and forget for a couple of months. But, alas, the reality is that forget the portfolio for a couple of months or even a couple of weeks has not come out. In any case, before a new bull cycle and global economic recovery. The investment process, including decision-making, tactics, etc. revisions. - A job to do every day.