| Topic : Investment Strategies during Economic slowdown |
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Posted in Community :
Sultans of NSE
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Source : http://ezinearticles.com
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last activity : 07 06 2010 20:18:04 +0000
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After over four years of unbridled surge, the Indian stock markets went through a period of sharp correction in the last few weeks. Of course, everyone loves a great ride, but even a small correction drives them to predict the worst. While the correction was not unexpected, the steepness would have caused a lot of heartburn among stock and mutual fund investors. Though prediction can go right but future is always uncertain...
The plunge of over 4,000 points has left investors wondering if this is the beginning of a bear market or just a knee jerk reaction to the recession fears in the US economy.
As is evident from the last few weeks, there is high volatility that would have shaken the confidence of even the hard core investors. But they should remember that it is a common phenomenon. Consumers ask, "Are annuities safe from a recession? Do they maintain value when the market goes down? Will they lock in my gains each year?" The answer is, yes. Investing in a fixed, an immediate, or an indexed annuity policy will protect your investment from market losses.
Should You Wait Out Another Correction? It is business as usual from the brokers, however. They simply tell their clients to wait it out. Yet, these same brokerage houses are busy selling stocks, trying to lock in profits while their individual clients absorb the losses.
What does History Tell Us? For many years the brokerage industry has shunned the safety of fixed annuity accounts while individual investor portfolios decline. If you look at a historical chart of the S&P 500 (a leading stock market barometer) it peaked in March of 2000 at approximately 1,500. In October of 2007, the S&P 500 appears to have peaked again at nearly 1,500.
why should mom and pop investors participate in this turmoil again? Do they experience a higher standard of living when the market increases? Usually not, but they certainly feel the financial pain when the market contracts by ten or twenty percent.
Is an Annuity the Answer? Annuity accounts are very beneficial for investors who need reliable growth, guaranteed income, and protection of their principal. Maybe the brokerage industry is winning the battle in the media, but annuity investors have been winning battle of asset preservation for the last ten years. Annuity owners have been protecting their principal and interest while experiencing above average returns on their investment dollars.
You might ask yourself, "Have I not investigated annuity accounts because of what I know, or what I think I know." If you are not sure, it may be worth learning more.
It is often said that 90 per cent of investment success depends on the quality of the portfolio and the right mix of funds investing in different market caps and the remaining 10 per cent on timing the investments.
In reality, many investors spend 90 per cent of their time "timing" their investments. As a result, they panic. Success in the stock market game, whether through stocks or mutual funds, hinges on one single factor.
Buy good stocks and funds and, then forget them. Returns will always come.
The plunge of over 4,000 points has left investors wondering if this is the beginning of a bear market or just a knee jerk reaction to the recession fears in the US economy.
As is evident from the last few weeks, there is high volatility that would have shaken the confidence of even the hard core investors. But they should remember that it is a common phenomenon. Consumers ask, "Are annuities safe from a recession? Do they maintain value when the market goes down? Will they lock in my gains each year?" The answer is, yes. Investing in a fixed, an immediate, or an indexed annuity policy will protect your investment from market losses.
Should You Wait Out Another Correction? It is business as usual from the brokers, however. They simply tell their clients to wait it out. Yet, these same brokerage houses are busy selling stocks, trying to lock in profits while their individual clients absorb the losses.
What does History Tell Us? For many years the brokerage industry has shunned the safety of fixed annuity accounts while individual investor portfolios decline. If you look at a historical chart of the S&P 500 (a leading stock market barometer) it peaked in March of 2000 at approximately 1,500. In October of 2007, the S&P 500 appears to have peaked again at nearly 1,500.
why should mom and pop investors participate in this turmoil again? Do they experience a higher standard of living when the market increases? Usually not, but they certainly feel the financial pain when the market contracts by ten or twenty percent.
Is an Annuity the Answer? Annuity accounts are very beneficial for investors who need reliable growth, guaranteed income, and protection of their principal. Maybe the brokerage industry is winning the battle in the media, but annuity investors have been winning battle of asset preservation for the last ten years. Annuity owners have been protecting their principal and interest while experiencing above average returns on their investment dollars.
You might ask yourself, "Have I not investigated annuity accounts because of what I know, or what I think I know." If you are not sure, it may be worth learning more.
It is often said that 90 per cent of investment success depends on the quality of the portfolio and the right mix of funds investing in different market caps and the remaining 10 per cent on timing the investments.
In reality, many investors spend 90 per cent of their time "timing" their investments. As a result, they panic. Success in the stock market game, whether through stocks or mutual funds, hinges on one single factor.
Buy good stocks and funds and, then forget them. Returns will always come.
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2 comments on "Safe Investments During Volatile Market Times"
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Commented by
varsha mishra, technical Manager(QMS), rfrac
| 10 09 2008 16:28:33 +0000
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Commented by
prabhat mishra, private banker
| 05 29 2008 22:51:17 +0000
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