How to protect your investments from significantly falling in value

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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.

Asset class returns

(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.

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