Long term investments – key to success in business
Beyond the decisions we make as managers, business people (and others) choose different directions increasing their earnings that they want to replicate. It is clear that money sitting around will not produce much.Everyone should invest in areas with a high transparency and a greater proficiency in nature experience.
Transparency and competence must be measured carefully but, as highly volatile economic environment requires, more than ever a long-term vision and not a short and medium term are demanded. The current situation offers investment opportunities in attractive corporate purpose assessments. Naturally, where there are lower prices and higher expected returns, there is also a risk.
Therefore it is recommended for a balanced approach that would include investments in shares – for a time horizon, where current price levels are attractive even if accept a short-term volatility – as well as fixed income instruments, preferably in USD – for the investor to have a stable component of investment income.
Also part of portfolio investment in commodities and real estate investment funds directed to these asset classes, have an important role, especially as protection against inflationary pressures and fluctuations in interest resuscitation. Investment proportions of course depend on the risk profile of the investor. It is very important to only take risks when you know and understand and, also, when you feel comfortable with the time frame that you have.
Estates can still become a good source of investment, while the market is at a very low level, maybe minimal. Those who have the necessary funding that can make purchases, now it can be profitable in the long term. Also, it is recommended a mix of investments with greater liquidity and less liquid. Interesting will remain well positioned properties, generating income through rental or forest land ( beginning with http://businesses-properties.com/on-sale-large-sawn-wood-mill-in-romania/ ).
Also, gold has been and remains a safe investment and more profitable, as the trend in recent years. Interestingly, more recently, silver is the new gold. Only in the past year, gold has appreciated by more than 50% and silver has doubled its value. However, demand remains favorable quantitative to the level of yellow metal. On a personal safe, gold remains the primary and most liquid investment manner.
In an economy and financial system as those in Romania, in the short term prevails, it is necessary to clarify the differences between them and the investment in the longer term. Opposite strategy involves speculation in stock market investments and hold shares of the order (preferably over five years). Of course, investors would prefer positive results every week, every month and every year, but we all know that is impossible.
If we focus on short-term results are likely to double hit market volatility, and the results may not be those that hope. Although past performance is not indicative of future results, there is a general trend of rising markets that last longer and grow more in percentage terms, while declining markets are generally shorter and less decrease. However, many investors will remember rather the hit of a steep loss, unexpected, than a slow growth.