CREDIT RISK MANAGEMENT 4

INVESTMENT AND PORTFOLIO MANAGEMENT : TRUST EVERYBODY, BUT YOURSELF MOST OF ALL…

Global investing is about asset allocation between equities, bonds, gold, cash and other instruments.It is also about investing in global markets. The fact that other people agree or disagree with you makes you neither right or wrong : You will  be right if your facts and reasoning are correct.

Actually, when it comes to investment decisions, you can’t discuss it with a lot of people. You have to follow your own judgment, and judgment cannot be discussed…

Hence, don’t blame others for your errors… :  If you are responsible, take the hit !

Because of the recent downgrading of the US debt by Standard & Poor’s, the volatility of the stock market has led many to reassess their investment strategies.

 

The importance of good portfolio management is obviously more evident during periods of market volatility and uncertainty.

For that reason, please keep in mind 2 things :

1. Success in investing usually does not happen by chance, nor does it come quickly…

2. As the famous economist John Maynard once said : « ….the markets can remain irrational longer than you or I can remain solvent ».

Too often, investors rush into an investment program without considering its risks in relation to its potential returns and without an understanding of the overall environment. The disappointments that often result can be avoided by understanding their investment personalities and by being able to express their investment goals in specific, concrete terms.

If the investment environment encompasses the kinds of marketable securities that exist and where and how they are bought and sold, the investment process is concerned with how an investor should proceed in making decisions about what marketable securities to invest in, how extensive the investments should be, and when the investments should be made.

Finally, investors should understand basic investment strategies !

Bonne chance !…

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