Investment Tips – low-growth country – Part 1

Financial news on US fiscal cliff, European Economies are doing bad, which is affecting the whole world. It is a cyclical effect when developed countries are facing financial crisis the other countries which depend on them are also affected!

• Currency. With the anticipation of US dollar as financial markets are in the bad shape. Try to keep most of your investment in your base currency. By which you can eliminate the transaction risk. If you can’t have all base currency go for hedging to minimise risk. Deposits in non base currency are more prone to speculative risk which in-turn will increase extra risk to your portfolio.

• Liquid assets. Have more than 3/4th of your asset liquid. That is in cash or assets which can be converted to cash easily. By which you can invest/ buy as soon as there is growth in the environment.

• Don’t get trap to gold Hype. In the low/ no growth environment most people want to be risk averse. People who buy gold at this time are not investing rather they are speculating.

• Control ‘alternative” investments. Have more liquid assets during in the low growth country. Private equity and hedge funds will be at higher rate in the time of global recovery.

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