Conservative spoen not much. Years of rates on savings and term deposits remain close to the wall. Rising inflation can be overtaken. They can do the investment. Marek Brvnk, macroeconomic analyst at Golden Gate, explains how to invest first and how to choose investments.

Before that we do not want to invest, it is necessary to find out how different types of investments we have available. The division of investments made me proceed according to several criteria.

According to the essence, we divide investment instruments into so-called paper assets and real assets. He divided me according to how the investment characterizes the breeding. Then we divide investments into so-called standard and anti-crisis investments.

Paper investments are building societies, pension funds, term and savings funds, shares, bonds, mutual funds, etc. Their indisputable advantage is that I do not have to physically take care of the investments. Neem storage, gossip, insurance, repairs and the like. It is usually a simple and time available form of investment. You can sign (often online) a paper contract. The disadvantage is that they can suffer a large loss in the event of financial turmoil, temporary unavailability of the Internet, etc. This is practically without exception a registered investment.

Reln’s assets are precious metals such as gold and silver, real estate, diamonds, umleck items, philately, numismatics, windmills and more. The advantage of real assets is that it is physically drm and mm is thus fully under control. These assets will exist even in the event of a market collapse or monetary reforms. These are real physical assets, their relative margins will be appreciated especially in the event of a market downturn, system malfunctions and crisis crises in general. The disadvantage is a bit of a complicated investment, we have to know something about images and numismatics in short.

In the second division, the standard investment is two as one that benefits from stability, low volatility and periods of economic growth. These are the stock, stock index, fund, bond, and even include real estate investin.

Anti-crisis investments are those that benefit from instability, high volatility, crisis, monetary reforms and the generally volatile geopolitical or economic environment. Here we include the shares of armaments companies, the shares of gold, and today it has popular metal tracks, such as gold and silver.

How to stablely build a portfolio

When we delve deeper into the types of investments, we find that there is something else to be thrown at. Some are worth the investment horizon, some times are investing. Precious metals, for example, include the value of assets (anti-inflationary effect) and protection in crisis. Stocks and bonds, in turn, generate profits in times of prosperity. The most important thing is that the bottom of these instruments is not up or better. It is only a good time to buy this and that and sell something else again. A stable portfolio is only one that works appropriately with risk and is diversified, ie distributed.

The reason for diversification is all day long. Bond yields are close to historical lows and room for growth in their prices is minimal. There is a lot of room for long-term growth in shares, real estate and bonds. Given that these markets will undergo a major correction during the financial crisis, diversification is a fundamental mantra of daily investment.

In a reasonably compiled portfolio, the city has all these types of investments. Simply so that property can be easily shifted from one to another and back, depending on how the economy works. Such diversified property is not only invulnerable in any economic scene, but even in every scene of extradition. Within the framework of the built portfolio, it is possible to move resources to a side where there is not the present, but the future. We are interested in future input, not at present.

What investment strategy to choose

For myself, I would currently recommend a highly defensive portfolio. In general, we should change the system, or even more so in the economic economy, the more anti-crisis investments we should keep. Therefore, I am currently regrouping my portfolio into anti-crisis units in the form of precious metals, gold and silver. At the same time, I am interested in the area of ​​paper investments (stocks, bonds, share funds, etc.). The current peak of the economic cycle signals a gradual reversal of the trend. I am convinced that in the next few years, anti-crisis investments will be significantly profitable and lose by default. It is reasonable for me as an investor to collect current profits and regroup most of the portfolio into assets that will only grow.

If someone buys only stocks, bonds and real estate, their portfolio is not completely diversified. This fact has been repeatedly proven. The last time was in 2008, when the real estate was also accompanied by equity and bond instruments. So if someone only divided their portfolio in this way, they watched online for a decrease in all their assets at once. For the next 3 and 5 years, I consider gold and silver to be a real and easily available diversification. Of course, it will be different in the following periods. On the contrary, gold with silver will eventually sell off. Until then, the bag will play a significant role in the protection and enhancement of property during the period of economic instability that began in 2018.

The economic climate and the latter, whether or not it plays a role, play a completely key role in investment. So it is not just a question of how long we have the investment horizon (for how long we invest), but mainly in what times we invest. In other words, at what stage of the economic cycle is it first found. This is absolutely crucial for choosing an investment strategy.