Let's be honest, it's now becoming very hard to not be aware of all the negative news at the moment with regard to inflation, crypto meltdowns, tensions between the US & China and a war!
It would appear that the world has gone mad and as a result we have seen significant falls in global financial markets affecting us all. Certain sectors of the market are holding up better than others and active management of your assets is key.
Active management should reduce the losses and hopefully position your portfolio for when the markets bounce back which has happened time and time again.
However periods of extreme volatility like this highlight the need for diversification and this can involve investing in property, gold or other assets.
Rising inflation also provides opportunities in fixed income investments which have looked very unattractive for a decade and more.
For those of you looking for complete security and a reasonable return it is now possible to lock into fixed income USD products paying 3% per annum over 7 years and 3.75% per annum over 10 years.
While the term is reasonably long your money is secure and the return is guaranteed. As a hedge against further volatility and to provide some stability to an overall portfolio now could be a good time to look at these kinds of products.
Not only can we offer a reasonable return for a lump sum investment over 7 & 10 years but we can also offer slightly higher returns for regular contributions into a fixed income product over 10 years.
Is this type of Investment right for you?
It is difficult to know this unless you know your attitude to risk and the time frame that you are looking to invest. The reality is that you may want to save for different objectives; a deposit for a house, retirement, university fees, a boat, wedding or holiday home.
Each goal or objective is likely to have a different time frame and you may feel that with some of your goals you are prepared to take a higher risk than for others.
Ultimately it will depend on you whether the time is now right to add some security to your portfolio through the addition of a ‘fixed income allocation’.
One thing is for sure in a fast moving and complex world it will undoubtedly help if you have a mentor by your side to help you with your decisions.
Please reach out to me to discuss your current situation!