Buy low and sell high. Beat inflation in your base currency. These are the basic things to be focused on when you start investing. You buy when the market is low and sell when it is high. That is easier said than done. Many people say they will wait until the market gets better before they will start to do anything. Fair enough but you could miss your chance to make that real killing so to speak. How many people would have had the guts to invest money in February/March 2009? I would say not many.
Anyway I'm getting ahead of myself. There any many different investment products out there and the choice can be overwhelming which is why some people hire financial planners to help them. They don't have the time or expertise to do it themselves.
Don't be intimidated by the many hundreds of investment brochures out there. If you open them all and go through them you will find that they invest in six different asset classes. These asset classes are:
1. Cash
2. Bonds
3. Equities (stocks or shares)
4. Property (Real estate)
5. Commodities
6. Collectibles.
Next time we will look at each of these separately.
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