If you are wondering when the global economy will recover from this downturn, you probably need more information about the market.
Equities, and financial markets in general, are volatile. Which means that their value fluctuates constantly over time, providing losses and gains. In the long term, however, there is a tendency to observe an upward trend, in markets, as those with a medium / long term investment horizon, continue to purchase stocks and propel the market upwards.
Here are some critical thinking points that arise when evaluating whether to invest in stocks and how to deal with them:
Is investing in stocks risky? It is possible, especially in the short term, to forecast market trends? The inconvenient truth translates into the probability of having both losses and gains. As in any form of investment, risk represents an essential component of equity investment, without risk it would not be possible to gain a return. For this reason it is essential to invest in high quality stocks.
“The composition of the portfolio requires research that cannot be improvised “
Is investing in stocks easy? The choice of stocks on which to invest is up to the investors risk tolerance and expected rate of return. There are both growth stocks, and value stocks. A well balanced portfolio will have a blend of the two. The performance of the share prices of each company follows particular dynamics linked to the characteristics of the individual company, the sector, the market and the currency. The composition of the portfolio requires research that cannot be improvised by just following the news but are the result of research and experience.
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VP of European Sales