Turn Market Downturn To Your Advantage

Long-term, regular investors benefit from depressed market

Global markets and economies continue to depressed due to recession.
Is there a reliable strategy that will tide us through both good and bad times?
Long-term investors should follow a strategy of regular savings during both good and bad markets.
During market slumps when prices are low, you can accumulate more units. By holding till markets are at attractive levels, you reap benefits over the long-term.
Choose a regular savings plan that is well diversified globally and by asset classes, well managed with low expenses.
About 70% of your long-term retirement funds should be in such well diversified, low-cost schemes.
Over the long-term, your regular savings in such funds should give you stable and attractive returns of about 4-6% per annum.
Investing in capital guaranteed funds is the current rage, which is not surprising considering that many investors' fingers have been burnt by volatile equity investments.
But one must understand the rising of the inflation rate especially last year which hit a new high of about 6-7%. With this, how can one be able to hitch against inflation and maximise the return one can get. Diversification is something investors can try to practice in a long term to minimise the loss one may suffer.
As one of the leading country over the world, education in this investment strategy in Singapore is still lacking.
As Warren Buffet say: "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
So what are you waiting for? Act now and not wait till the Spring is over.