There are many aspects of investing but some of the more important ones include when to buy; when to sell; how much to put in any one investment; what asset allocation to implement; possible currency diversification; and preserving and growing your wealth through effective risk management techniques.
Many investors do not know when to sell securities. How many investors rode up the technology bubble and then just rode it down, a very painful event. The number of people that were negatively impacted by the 2008-09 stock market crash is very sad. Why? Simply, they did not have a risk management platform in place. Many investors argue that that should have been their advisors job and I agree, but the industry is structured to buy and hold. This poses huge risks during times like we live today. Investors must have techniques and tools to know when to lower or get out of equities; how to protect profits once solid gains are in place; and how to make money in down cycles versus losing significant sums like the majority. We at Fortrus teach these concepts and make it clear and simple on how to implement.
Some of the strategies we encourage our clients to utilize are
- Stop losses, or strategic cover calls which protect profits on your existing investments
- Utilization of moving averages; trend analysis; and other core technical indicators to better know when to be aggressive in your strategy, and when to be conservative.
- An ongoing and fluid asset allocation approach that categorizes your investments by your major categories like cash, fixed income investments, growth investments, can help you properly balance and adjust your investment positions in each category based on economic conditions, to maximize portfolio performance.
- History shows us that investments, economies and societies move in trends and cycles. Analyzing major investment cycles and trends, on both the short and long-term basis can help improve your investment performance.
- Minimization of fees can dramatically improve the health of your investments and your portfolio’s profits.
- It is important to be fully aware of, and understand the institutional risks that are associated with the current investment & financial system.
- It is important to be aware of Penny Stock Scams and other get rich quick investment schemes.
- Protecting yourself and your assets from fraud should always be a concern when managing your finances, but this is especially true in todays modern age with computers, internet, and online transacting increasing so much in recent years.
Given today’s high-risk environment, there are strong signs of a major economic and stock market collapse over the next 12-18 months. Therefore, it is critical to put in place safe wealth strategies to protect your wealth and future.