Why not 100 equities
International Marketing
Emma Nikolajeva
Why not 100 % equities
It is always a big risk to invest 100% in business or not, even if the business plan shows great results and performances in the future. You cannot influence all risks and factors which may affect your particular investments. For example: economic situation, globalization, political situation etc.
Modern finance offers two choices, one is about risky assets to hold, and second how much risk to bear are independent choices. Of course there is always a portfolio and information which helps to understand particular case and investment. But still it is very sensitive moment and it takes much time to make a right decision to that moment.
For starters, they should adopt realistic return expectations for example classic 60/40 portfolio. But those returns are unlikely to repeat themselves, especially if the economy enters a reflationary environment that typically punishes valuation multiples. Too many investment plans use long-term historical averages in setting return targets.
I would say there are many opportunities what to do with equities, bonds and other investments; last word anyway stays beside the person who takes this risk and makes investment. There will be no right decision, this article can only advise that there the opportunities, but this last choice anyway is made by you.
Emma Nikolajeva
Why not 100 % equities
It is always a big risk to invest 100% in business or not, even if the business plan shows great results and performances in the future. You cannot influence all risks and factors which may affect your particular investments. For example: economic situation, globalization, political situation etc.
Modern finance offers two choices, one is about risky assets to hold, and second how much risk to bear are independent choices. Of course there is always a portfolio and information which helps to understand particular case and investment. But still it is very sensitive moment and it takes much time to make a right decision to that moment.
For starters, they should adopt realistic return expectations for example classic 60/40 portfolio. But those returns are unlikely to repeat themselves, especially if the economy enters a reflationary environment that typically punishes valuation multiples. Too many investment plans use long-term historical averages in setting return targets.
I would say there are many opportunities what to do with equities, bonds and other investments; last word anyway stays beside the person who takes this risk and makes investment. There will be no right decision, this article can only advise that there the opportunities, but this last choice anyway is made by you.