How To Deal With Market Uncertainty In Investment And Financing

The first asset allocation.

It is important to avoid fear when it comes to greed and to understand your own risk tolerance.

Investment is often earned by "time value". Therefore, different age bears different risk tolerance and carries out corresponding asset allocation.

There is a very interesting "100 rule", that is, by subtracting your age by 100, you can invest in the proportion of high risk products such as stocks or stock funds, and the rest of the funds may buy some low-risk bond funds and monetary funds to establish a more robust balance portfolio.

In addition, we can reserve some idle funds to buy in the market and get excess returns in the future.

Stock investment may follow a simple principle.

The stock market is a place for investors to collect bidding. The more easily understood company's profit pattern is, the easier it is to get investors' approval.

Buffett's reason for investing in Coca-Cola can be summed up simply by "brand advantage, distribution channel advantage and cost advantage".

Minimize the probability of making mistakes.

Before buying a stock or a fund, we should carefully confirm that its risk / income characteristics are in line with its own risk bearing capacity. This part of the preparatory "homework" is not dispensable at all, and must be done enough to bear in mind that we must not take it lightly.

Funds are generally operated through investment portfolios and have a certain risk dispersion characteristics. Therefore, the number of funds should not be excessive, so as to avoid this effect and affect long-term returns.

We should consider the balance between stock and fixed income, domestic and overseas market and so on.

Short term access to more than "small rich", long-term possession can "big rich".

Professional investors who pursue value investing are generally disdain for short-term entry and exit.

However, after a century of financial crisis baptism, short-term access, setting stop loss point or risk control is also one of the specific practices.

But the attraction of investment lies in the fact that risks and benefits are ultimately matched.

As for how long it takes to invest in a long term investment, we can apply the idea of another investment master, Peter and Lynch, to guide the operation. As long as the reason why the original purchase is good, there is no fundamental change, we should firmly hold shares so that we will not miss the "Ten Bagger" (ten times stock).

The same is true for investment funds.