The run-up to the EU referendum saw investment fund managers shovelling assets from equities (stocks & shares) into cash, over fears that Brexit would cause another financial meltdown and send stock markets into freefall. Investment portfolios had cash levels of 5.7 per cent, the highest level since 2001 and a figure usually only seen in a recession. This is because investors tend to flee towards ‘low-risk’ assets such as cash and bonds during times of instability.
Shares
Cash
When deciding how to invest, you first need to consider your risk tolerance. In simple terms, this is how much money you can afford to lose in the short term, and how long you can wait before achieving positive returns. It defines how much room you have to manoeuvre, and is a key factor in most investment decisions. This is why people who have a lot of money tend to be able to make more money – because they can afford to take on much more risk without affecting their overall lifestyle. It is much harder to chase big investment returns if you are using the housekeeping money.
I am an Independent Financial and Mortgage Adviser and have worked in Financial Services for over 12 years. During my career I gained experience in assisting both individual and corporate clients.…
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