All investment advisers and
analysts are facing a rough time addressing their audience — be it a paying
clients or just media viewers and readers.
Nothing seems
to be working any more. Equity investments haven't made any progress upwards
for close to six years. At the present, bonds have also turned volatile. Fixed Deposits
earn nothing much when compared to inflation. The time of gold too seems to
have past. Far too many individuals have their cash trapped in real estate
where the asset value isn't appreciating and interest rates are starting to bite.
If convention
was to be followed, then at some point in this post, you would be expecting me
to come up with some form advice, some arithmetic, algorithm or formula that I
would claim enables you to evade the crisis in investing and earn some decent
returns. Unfortunately, no such magic bullet exists here or anywhere. As the
popular joke goes, “it’s like this only”. Remember, I’m not being pessimistic
here!!
Proper
management of your investments, at the end of the day, only works where you have a
distribution between good investment options and bad ones. The job of portfolio
management then comes to avoiding bad investment options.
Depending
on circumstances, there may be few good investment options or there may be
more, or there may be those options with a high degree of uncertainty. However, nowadays, we don't really have a scenario where there are any investment
options that you can call good with any degree of certainty. The reality is that, in
every part of the economy, the chickens are coming home to roost.
So if you
are looking for an investment option that will definitely beat inflation and
give you some respectable return on your investment while performing as you would
reasonably anticipate, then there's none. It's a matter of keeping the faith
and believing hard that things have always got better in the past and so they
will this time round.
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