How to reduce the risk of your investments falling in value
It’s January 2018.
A client calls me, asking how to invest in emerging market investments.
“Why do you want to invest in emerging markets?” I ask
“They were the top-performing investment last year,” he tells me.
“But past performance is no indication of future performance”. I tell him.
“Remember diversification?” I ask. “Not putting all your eggs in one basket?”.
Fast forward one year. It’s January 2019.
That same client calls me:
“I’m glad we didn’t invest in emerging markets last year,” he tells me.
“Why’s that?” I ask.
“They were the worst-performing investment last year,” he tells me.
(Source – NovelInvestor)
All the best,
James Mackay, Independent Financial Adviser in Bristol
P.s – if you want a little more help with navigating your investments, check out the 7 Simple Steps to Investment Success. It provides you with a proven process to help you avoid costly mistakes and tilt the odds in your favour. You can get a copy by clicking here.