Archive for Portfolio Management

Zurich has, for the first time in at least twenty years, been ranked as the world’s most expensive city in which to live, according to the Economic Intelligence Unit’s bi-annual Worldwide Cost of Living Index. Read More→

EmailPrintLinkedInInstapaperEvernoteRead It LaterGoogle BookmarksGoogle ReaderHotmailYahoo BookmarksShare

Inflation in the US since 1950 has averaged 3.76% per annum. This means your money would need to match this figure just to stand still, with any less resulting in a loss. A cash investment of $100,000 with an inflation rate of 3% over a term of 10 years would fall to a value of $74,144.

There are concerns (International Adviser 2010) that current monetary policies, combined with significant public deficits in developed economies, may lead to higher inflation in the next three to five years. This may start with short-term, inflation pressure from emerging countries’ strong economic growth, demand for commodities and currency appreciation.

According to (The Economist Oct 18th 2011),‘Annual inflation in the UK rose to 5.2% in September, powered forward by big jumps in housing costs and the price of clothing.

How can investors protect themselves against inflation? Read More→

EmailPrintLinkedInInstapaperEvernoteRead It LaterGoogle BookmarksGoogle ReaderHotmailYahoo BookmarksShare

Before you embarked on your financial planning programme, did your Advisor ask if you were a low, medium or high risk investor? The chances are you chose between the two extremes, it’s human nature for many to plump for middle-ground when it comes to investments.

 However, did you really understand the level of risk you selected? What exactly does a ‘high risk’ investor mean? Does high risk mean there is a chance of your investment becoming worthless or does it mean that it will experience very sharp swings in value? Perhaps both? Did you understand when choosing your risk level, by how much your portfolio might move both to the upside and through times of volatility? Read More→

EmailPrintLinkedInInstapaperEvernoteRead It LaterGoogle BookmarksGoogle ReaderHotmailYahoo BookmarksShare