Is a large-scale crisis possible, likely, certain? Here are three golden rules for navigating your investments during tough times. Without pretending to anticipate the coming months, we can reasonably believe that the economy will suffer. momentarily? sustainably? The Romans said, “If you want peace, prepare for war.” The same is true in the field of investment. Do not close a file But prepare for the worst. This is much better if all goes well in the end.
I am often asked the question of what to do in terms of investing with everything that is happening today and especially everything that is likely to happen.
The economy will suffer…a little, a lot?
It is true that with war on Europe’s doorstep, with evidence of energy and food supplies, rising prices, inflation, rising interest rates, and geopolitical risks all over the Earth…we can ask ourselves questions about the possibility of a serious crisis.
So what do you do?
First, forget about political correctness and agree that there may be major, unexpected shocks. Then there are three golden rules for getting through tough times.
First Anti-Crisis Golden Rule: Take a Path and Stick to It
And that means, don’t be emotional with everything that’s going on. The news, the good news, the bad news, the worst news, the surprises, the unexpected etc… Because all news is bad advice. Simply information, analyzes talk about circumstances, about the scum of things. They don’t talk about the changing world. They are too close to the changing economy to see the real trends. So take a course and stick to it.
Golden Rule Two: Do Real Diversification
Because we are often wrong. For example in real estate, when a person has several homes, he says to himself, “It has varied well.” No way ! Because the property depends in its security and performance on several things. It can rather be based on economics such as commerce, offices and logistics or rather on demography such as housing, health and housing for the elderly. So already at the real estate level, do a good diversification.
Next, diversify between real estate and corporate stocks. Because even if the stock market gets harassed, it always rises even after serious crises.
Then there is a second variety that should not be forgotten. Diversify according to the financial needs you may have along the way.
Imagine that you need money at some point. And real estate is not at its best, and the stock market is suffering. Now is not the time to resell.
It is necessary to plan, in diversifying it, with a pocket of available money.
There is also a third variation, which thinks of the unexpected, the unimaginable. There are safe havens. Maybe gold, silver and maybe cryptocurrency. There is absolutely no question of compatibility or intelligence, because no crisis is like the previous one. It’s about saying, “I prepare for the unexpected and I’m going.”
The third golden rule: It’s never the end of the world!
And this is very important, that is, in any case, you have to think, you have to prepare your investments knowing that real estate can be damaged, and you will start over. It is necessary and will accompany the company that will start over on better foundations.
Corporate stocks can suffer a lot, but they always come back anyway, just like the economy.
So, if we think that this is never the end of the world, that we’ve diversified well and that we’re staying the course, well, we’ll get through the turmoil better. Waiting for good weather after the crisis.
After the crisis comes the good weather
This is what I wanted to tell you today and above all I wish you lots and lots of success in this period which may be very easy or which can be very difficult. Anyway, I wish you all success.
What you may not know about investment diversification