Investments depend upon your financial goals and risk tolerance. It is unwise to follow relatives and friends when it comes to financial planning for the future. Everyone has their own personal goals and interest, so when it comes to financial wealth building, understanding investments and how they will work for you is the first step.
Kavan Choksi– investments in gold and shares
Business and finance expert Kavan Choksi states that most people invest in gold and shares extensively across the globe. When it comes to gold, it is a safe-haven investment with a lower risk. For instance, when gold prices drop, many investors rush to buy it with the expectation that its value will increase in the future with time. For example, in the UAE, the prices of gold dipped due to significant world events, and many investors started to buy it at a lower price. However, on the other hand, investors who were holding currencies other than the US dollar found gold to be expensive. Recently, the dollar index rose to a three-year high, and there was increases in US bond yields as well. From the above, it is evident that one should first understand how investments work in order to enjoy consistent returns rather than fall prey to the hype in the market.
Keeping a watchful eye on market trends
When it comes to the efficiency of shares, their prices and returns depend upon the global economy as well. For instance, when the Coronavirus pandemic surfaced in 2020, the inventory market suffered in January. Many traders pulled back from investing, and the S&P500 fell more than once. With subsequent variants of the Coronavirus surfacing in different parts of the globe, the financial markets again suffered a setback. Though some monetary experts were optimistic that the second half of the year would change, many traders still stayed away from share trading. There was a lot of anticipation in the market, and most experienced traders focused more on the diversification of their asset portfolio over investments.
From the above, it is evident that sound financial knowledge of the market and how the asset class performs in the region you are based in will determine the success of your investments.
According to business and finance expert Kavan Choksi, it is prudent for investors to study the asset classes first. They should be aware of global events and how they impact the rise and fall of prices. Business and monetary consultants guide you on risk management and investment portfolios. The recent years have been quite volatile, so discretion is the key before going in for any investment, gold, shares, bonds, etc.
His advice to investors is to keep a watchful eye on inflation and the market. When it comes to shares, it is crucial to check the performance records of the company and look out for red flags, if any. If you are looking for a safe haven investment with lesser risks, gold will work better for you than shares. However, when it comes to consistent returns, its prices will fluctuate, so you must keep an eye on global events and how it impacts the costs of gold if you wish to sell or buy it in the market.