We’re in challenging economic times right now, arguably some of the toughest of all time. Potential investors need to think carefully about their investment strategy, you would be foolish to stick to the same investment strategy. But how do you diversify, and to what extent should you change course? The following article will hopefully help to advise you.
Don’t neglect your savings
Investment Strategy
Life is full of unexpected emergencies and the associated expenses that come with them. This is why you should be sure that you have enough cash in an easy-access savings account to cover any shortfalls. Investment experts advise that at all times, you should have at least the equivalent of three months’ income to cope should you fall on hard times.
Don’t put all of your eggs in one basket
Those in the trade call it ‘diversification’, in simple terms it means hedging your bets by investing in several different areas. If you are not investing personally and putting your money into an investment fund, make sure that whoever looks after this is investing in a number of areas, not just the stock market.
Stocks and shares
Stocks and shares are always a high risk investment, but at times of economic uncertainty, they are even more of a gamble.
Emerging market funds such as China, India, or companies that have interests there could be smart investments. In terms of verticals, look at high-growth industries such as IT and dot com.
Make the most of allowances
Remember, you can invest up to £10,680 in 2011/12 and for 2012/13 £11,280 in an Individual Savings Account (ISA) in every tax year. The interest from this (up to 3% in some cases) is not subject to personal income tax or capital gains tax. The same goes for other products such as
Property Market
The property market isn’t what it used to be, with access to finance being a real problem, not only for those looking to invest, but also those looking to buy private dwellings. However, if you have the capital to invest, there are plenty of bargains to be had, and with strong demand for rental properties this could provide a solid return on your investment.
If you already have property, the best advice is to hang on to it until the market improves, no matter how challenging you may be finding the mortgage repayments.
Please bear in mind as a reader : A detailed knowledge of the savings and investment market can help you develop your resilience, but advice should also be sought, particularly if you are becoming an investor for the first time. Search investment blogs and learn from the experts how to keep your cool.

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