Thursday, 22 November 2012
3 Questions to Help Determine The Best Investment Strategy
When investors are looking for a safe and dependable place to invest their hard-earned money, they encounter thousands and thousands of investing options to chose from, including traditional, alternative, hard assets, stocks and commodities. For those investors who are a little confused about where to begin, these three questions will help determine the most appropriate and effective, investment strategy:
Many investors start by asking themselves: What should I invest in? Experts recommend conducting market research to find a commodity or asset, that is in constant demand (supply and demand). In most instances, investors have had to consider alternatives to common investments, in order to achieve their investment goals.
Second question to ask, is: How much risk am I willing to take, for the expected return on the investment (ROI)? It goes without saying that investors should always seek out low-risk, high-reward investing options (risk versus reward). However, investors should also be mindful that almost all investments, carry some measure of risk.
The third question investors should ask themselves is: How much money am I prepared to invest? Find out how much return has been paid out in the past to investors and what can be expected in the future. Have current investors seen a positive and consistent pattern of returns being paid out?
Every investor wants to invest their money in the best safe investment, that will generate a healthy income for them, in the future. With that being said, investors should seek low risk investments that have demonstrated a strong demand in the market, and that analysts have predicted will remain popular; over a long period of time.