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How to Diversify Investments: 4 Easy Tips to Help You Get Started – Entrepreneur

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February
6, 2021

7 min read

Opinions expressed by Entrepreneur contributors are their own.


“Don’t put all your eggs in one basket.” This is an old saying that remains relevant, especially when it comes to investing.

Diversification is an important strategy that experienced investors swear by. A diversified investment portfolio is less likely to be severely affected by market swings. It can also optimize returns. Since each area of investment reacts differently to the same event, adverse reactions would be offset by positive results that affect your other assets.

The investment landscape during the Covid pandemic demonstrates how important diversification is. Anyone who kept nothing but popular stocks, for example, would have wished that they also had other types of like treasury bonds, which would have offset their stock market losses.

Related: How Millennials Are Changing Stock Investing

It’s not going to be very easy to determine the right mix of investments to get, though. If you want to find the right investment options to include in your portfolio, consider the following tips.

1. Conduct thorough research

Before you make any investment, take a deep look at your entire financial situation, especially if you’ve never made financial plans before. 

You wouldn’t make any major purchases, like a car, without first researching various brands and models. The same applies to all forms of investment. Let’s say you want to place most of your life savings in stocks. You have to learn more about the various companies and industries you want to consider investing in.

Although you may be able to reap larger returns with higher- investments, such as stocks, it is a good idea to also diversify with lower-risk investments. They may have lower returns, but they are not as risky to keep. Putting all your money in a single class of investments you believe would have high yields is no longer investing but more of gambling. It’s even worse if you are making the selection out of gut feeling.

According to Aaron Keller, an adjunct professor of marketing at the University of St. Thomas, it’s a big red flag when somebody outlines investments but fails to clearly articulate the reasons for placing money in the areas they picked. It’s a fact that some people plow ahead with investing, without conducting thoroughly-planned research.

Try to figure out your goals and risk tolerance. You could tap the services of a financial professional, but you may do it on your own.

2. Get out of your comfort zone

Investing in the same thing over and over, day in and day out makes for safe and predictable investing. However, doing so limits your opportunities for higher returns. Also, while you might feel cozy in putting all your money in safe investments, it is tantamount to being unable to adjust to changing times.

Those who placed a considerable amount of money in airline stocks should know. When the pandemic decimated air travel, stocks of airlines and related businesses plummeted uncontrollably. The same happened with the stocks of restaurants and businesses in the hospitality industry as the lockdowns forced many to temporarily (and some permanently) shut down.

Related: How to Minimize Risk and Protect Your Money During Times of Crisis

So ask yourself, what’s the worst that can happen if you invest elsewhere?

Upon realizing that the worst is survivable, and what you feared is unlikely to happen, you gain the courage to take the necessary risks to put your money in other businesses. 

You can’t guarantee anything — except that you’re going to be uncomfortable at different points. And, when you know that, you can decide to start getting out of your comfort zone.

3. Do not dismiss alternative investments because of current low returns or their limited markets

According‌ ‌to‌ ‌Raymond‌ ‌Collins,‌ ‌CEO‌ ‌of‌ ‌Whiteside‌ ‌Capital‌ ‌Group‌,‌ ‌with‌ ‌many‌ ‌investors‌ ‌looking‌ ‌to‌ ‌diversify‌ ‌into‌ ‌alternative‌ ‌investments,‌ ‌it‌ ‌would‌ ‌drive‌ ‌demand‌ ‌and‌ ‌push‌ ‌values‌ ‌of‌ ‌these‌ ‌items‌ ‌up‌ ‌significantly.‌ ‌

“Inviting multiple potential buyers always leads to competitive bidding that pushes the price of the item higher, enabling auctioneers to maximize their profit,” says Collins, as he compares price movements in the investment market to auctions. “We source and introduce opportunities for our clients to fund the acquisition of undervalued assets. In return, we allocate a share of the profits to our clients after every successful ,” Collins adds.

Many alternative investment options include buying distressed assets, such as purchasing luxury items such as branded handbags, watches, yachts, paintings, etc. Where through fast sales, these opportunities allow investors to act quickly and gain profits.

Also, it is inexpedient to avoid investing in businesses that appear to have a limited reach. The stocks of companies that specialize in products for the affluent could be among the undervalued investment options you keep ignoring. As the previous two tips say, consider taking risks and getting out of your comfort zone. 

4. Take advantage of tech solutions for investing

You don’t need to earn a degree in or become a computer whiz to leverage the benefits of technology in investing.

Tech entrepreneur and consultant Pritom Das says technology helps in investment strategy when it comes to financial planning, communication, security, and situational awareness. “Innovations have radically democratized investing, making it more transparent and easier to engage in,” Das says.

Also, using the right software tools is advantageous in filtering out information and insights that guide investment decisions. “Before you can make the right deals, you have to know that the opportunities exist. With information overload nowadays, it’s very easy to lose track of important news that might be useful. It’s even possible to miss news that could have a major impact on your portfolio,” Das asserts.

AI-powered investment news aggregation is a great tool to compile useful information that influences investing choices. Likewise, it would be advantageous to have programs that quickly generate graphs and charts or process various data into one easy-to-digest presentation.

There are online platforms designed to aid investors in accessing a wider range of investment types in various classes. These can help you find investments with low or negative correlations to make sure you are not going to have investments that altogether get affected by chain reactions whenever something untoward happens in the market.

Related: 6 Savvy Ways to Diversify Your Investment Portfolio

Lessons to takeaway

Diversification is oft-repeated advice for investors. It is not as straightforward and easy as it sounds, but it is not too difficult to achieve. You just need a knack for sensible research and investing preparation. 

Having access to relevant information and updates will guide you to the right stocks, bonds, and other financial instruments that you can invest in. This negative or zero correlation is essential to make sure that your investments will not crash all at once whenever the markets go haywire. Also, research lets you know which investments to get, keep or drop.

There is no guarantee that you’ll hit a jackpot in your investments if you diversify, but it’s necessary to get the facts straight about investing so you could follow through with a well-prepared plan. Also, while diversification does not guarantee against losses, it is a vital component of realizing long-term financial goals by minimizing risks.

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Walter GAM acquires leading farmland investment firm – Wealth Professional

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In light of the current volatility in stock markets and low yields in the fixed-income space, investment in farmland has become increasingly attractive to institutional and private investors. The high-quality, in-demand asset class offers the promise of stable, uncorrelated returns along with an effective hedge against inflation.

“In Walter GAM, Bonnefield has found an ideal partner to help us achieve our long-term vision for our company,” said Bonnefield President and CEO Tom Eisenhauer. “In addition, Bonnefield should benefit from Walter Global Asset Management’s multifaceted support through its next ambitious stage of growth, while creating with this transaction a true win-win situation for all of our stakeholders.”

Bonnefield will remain independently operated by its existing management team, who will also be getting an increased stake in the firm as it aims to grow employee ownership over time. The management team will also have the opportunity to access expertise provided by Walter GAM as they leverage Bonnefield’s leading position to boost growth and achieve its full potential.

The transaction is also anticipated to result in greater access to capital for Canadian farmers, both from Bonnefield’s existing farmland purchase and lease offerings as well as future product offerings to help farmers grow, transition, and mitigate financial risk in their businesses.

For its part, Bonnefield has pledged to continue its role as an active participant in Canadian agriculture, dedicated to protecting farmland for farming and enhancing the long-term sustainability of Canadian agriculture.

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BTV Shares Investment Opportunities in Canada's North – Investing News Network

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On national TV Sat. Mar 6 & Sun. Mar 7, 2021 – Invest Canada North! BTV-Business Television presents resource companies in Canada’s north.Cannot view this video? Visit: Preview: YouTube BTV Live Premiere 1pm PST today + Meet the Hosts of BTVClick here to set a reminder! Discover Companies to Invest InOsisko Metals Inc. – As sustainability and electric transportation rise in popularity the demand for zinc increases …

On national TV Sat. Mar 6 & Sun. Mar 7, 2021 – Invest Canada North! BTV-Business Television presents resource companies in Canada’s north.

Cannot view this video? Visit:
https://b-tv.com/investment-opportunities-in-canadas-north-btv-ep-356/

Sneak Preview: YouTube BTV Live Premiere 1pm PST today
+ Meet the Hosts of BTV
Click here to set a reminder!
Discover Companies to Invest In

Osisko Metals Inc. (TSXV: OM) (OTCQX: OMZNF) – As sustainability and electric transportation rise in popularity the demand for zinc increases and this company is poised to take advantage.

Whitehorse Gold Corp. (TSXV: WHG) – This company sports a new management team stocked with industry veterans ready to revive and expand a past producing mine.

Sabina Gold & Silver Corp. (TSX: SBB) (OTCQX: SGSVF) – BTV visits this company moving towards opening their first gold mine in Nunavut.

NorZinc Ltd. (TSX: NZC) (OTCQB: NORZF) – BTV learns why this company’s high-grade zinc-lead and silver mine is on track to be the next development mine in the Northwest Territories.

Victoria Gold Corp. (TSX: VGCX) (US: VITFF) – BTV gets an update on the company’s Eagle Gold Mine in central Yukon on target to produce between 180K- 200K ounces of gold in 2021.

White Gold Corp. (TSXV: WGO) (OTC: WHGOF) – This company boasts a district-scale land package in the Yukon and its flagship property has shown significant defined gold resources.

On air for over 20 years, BTV – Business Television, a half-hour investment TV show, features analysts and emerging companies on location. With Hosts, Taylor Thoen and Jessica Katrichak, BTV brings viewers investment opportunities.

TV BROADCAST NETWORKS and TIMES:
CANADA:

BNN Bloomberg – Saturday Mar 6 @ 8:00pm EST, Sunday Mar 7 @ 4:30pm EST
Bell Express Vu – Saturday Mar 6 @ 8:00pm EST, Sunday Mar 7 @ 4:30pm EST

US National TV:
Biz Television Network – Sun Mar 14 @ 8:30am EST

Suggest a Company to Feature!
Contact: (604) 664-7401 x3 info@b-tv.com
To receive news, click here to subscribe.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/76059

News Provided by Newsfile via QuoteMedia

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Vinergy adds Blockchain Expert to Strengthen Investment Committee – Regina Leader-Post

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VANCOUVER, British Columbia, March 04, 2021 (GLOBE NEWSWIRE) — Vinergy Cannabis Capital, Inc. (“Vinergy” or the “Company”) (CSE:VIN, OTCQB:VNNYF, FSE:1V7) announces that the Company’s Investment Committee has appointed Dr. Peter White to its Investment Committee advisory. Dr. White will work with Mr. Albert Szmigielski to assist the Investment Committee with due diligence to help identify potential blockchain and digital currency targets that align with Vinergy’s now expanded investment policy.

Dr. Peter White researches the development, adoption, and impact of communication, blockchain, and big data. He also works with industry partners building next generation communication technologies in health and genomics, social media, blockchain, sports, and big data. Dr. Peter White has previously been an Advisor for Blockchain Strategy at Digital Asset Management Corporation and Hyperbridge.

Dr. Peter White is a Professor in the School of Communication at Simon Fraser University where he is Director of the Genomics and Networks Analysis (GeNa) Lab and Associate Director of the Centre for Policy Research on Science and Technology. He is also has affiliate Professor positions in Computing Science at SFU and the Faculty of Medicine at the University of British Columbia. He is a member of the Centre for Clinical Diagnostic Genomics at the Michael Smith Genome Sciences Centre in Vancouver. He received his PhD from the Annenberg School for Communication at the University of Southern California in Los Angeles.

John Vu, lead director, stated, “Dr. White is a leading block chain expert with deep industry experience and acumen. His work in the space has resulted in multiple commercially beneficial endeavours and we will leverage his breadth of knowledge to evaluate the multiple value creating opportunities we are currently evaluating in order to make our first investment in the sector over the coming weeks.”

The CSE does not accept responsibility for the adequacy or accuracy of this release.

Vinergy Cannabis Capital Inc.
Arif Merali, Chief Executive
Email: arif_merali@hotmail.com

Cautionary Statement Regarding “Forward-Looking” Information

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by law. By its very nature, such forward-looking information requires the Company to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

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