When you earn your money the hard way, it’s a common reaction to hold onto it. But that will not make your money grow since our ‛cost of living’ tends to increase proportionally with our funds. This means that your shot at being wealthy goes much further than earning it requires the investment. It is a process of using your present funds to acquire things that will provide the potential for profitable returns through the appreciation of value from your stock portfolio, dividends and interests from savings, cash flow from real estate or business, etc. If you want your investment to truly blossom, you need to know how to devote your limited resources to the things which have the largest potential for returns.
Your Best Friends
Whether you’re a ‛girl’ or a ‛boy’, diamonds could still be your best friends – if you know how to invest them. The global economy had many ups and downs, but from 2008 it has mainly downs, forcing people to watch out for their money and search for some real alternatives instead. We’ve learned the advantages of physical commodities and increase in the value of silver, gold, and lately – diamonds.
The growth of their use as an investment is evident from the appearance of interesting Wikipedia section, and the reasons are quite simple – you can enjoy them while you have them, they’re inflation-proof, since they don’t take up the room they’re an excellent means of transfer, and, as the hardest substance on the world, you can say they’re pretty durable. But to enjoy all these advantages you need to know how to invest in them properly. As Diamond Portfolio experts point out, this process requires certification, sourcing, market education, vault storage, and much more. Nevertheless, the strong increase in demand from evolving markets such as India and China will certainly make all that effort pay off.
The Bay of Blood
As the subheading suggests, there will be times when everyone is getting out and you must buy – if you’re experienced, that is. The reason lies in the fact that the stock prices of some great companies will occasionally inevitably go through slumps when fickle investors head for the hills. That’s why you should buy when there is blood in the streets even if it’s your own, as once Baron Rothschild has put it in a pretty picturesque way.
That doesn’t mean you should buy garbage – these are the situations in which good investments become oversold and therefore provide the perfect buying opportunity for investors who have the guts (no pun intended) and who have done their homework. The easiest and quickest way to find out when a stock may be oversold is through price-to-earning ratio. There are many others who can also smell this opportunity so an immediate reaction is mandatory.
Waiting For Maturity
Most of the people don’t like the idea of taking the slow lane to the return of their investments, but the word ‛waiting’ in the subheading actually refers to an immediate action with a postponed outcome that will certainly pay off. Bonds present this slower and less precarious journey, but the zero-coupon ones are very likely to double your money.
The idea of purchasing them may sound intimidating at first, but when you figure out the trick behind it you’ll be quickly reassured. Your bonds will not reward you with a regular interest payment, but you’ll get them at the discount and they will mature. This means that you won’t pay a 1000 buck for a 1000-buck bond which pays five percent a year, but you’ll buy the same 1000-buck one for 500 bucks. Its value will slowly climb as it moves closer to maturity and you’ll eventually be repaid the face amount.
There is also a hidden benefit that lies in the absence of the reinvestment risk, which means you’ll be free of the ongoing challenge of reinvesting the interest payments when you receive them. This makes this approach both – cunning and safe – which is a rare combination.
The investment world is full of speculations, but not all of them bear the satisfactory fruits. If you want yours to blossom, you need to find your way to the money-tree, even if that means taking your best friends to distant and evolving markets, plunging into a bay of blood, or simply waiting for the maturity of your bonds.