The big question is nowadays….what should I invest in and what will be safe enough to not lose money on? Imagine you have €100,000 to invest…. how should you invest it now? “Scan through your portfolio to see if there are any of your assets that you should now buy more of at lower prices or venture outside the box and look at the metal mining industry that is on the rise,” said James Sinclair, head of allocations at SML&Associates: http://smlandassociates.com/ in London. Keep your options open “You should not put all your eggs in one basket to begin with.”
At SML & Associates, “we advise for you to buy when the market has stabilized and about to rise again” advises Sinclair. “Basically what happens is, when the market suddenly drops it opens up a new buying opportunity that previously didn’t exist. The time to invest in a product is when it’s not at full price but rather when it is on sale”
Sinclair states that “to keep an open mind and think about seeking out higher quality dividend growth stocks as these typically outperform all other categories. Another area to look at is diversifying in high-quality short-term bonds, but currently at SML & Associates, we are suggesting to keep an eye on the palladium and precious metals market”
We ask Mr Sinclair what he would do with his spare €100,000
“For example if I had no particular needs for cash flow and was interested in maximizing a return, I would invest a minimum of €60,000 and up to €80,000 into stocks with an emphasis on assets that are slightly more risky in terms of value,” Sinclair said. “I would keep about €20,000 in cash and short-term bonds paying about 2-2.5% and use these assets to buy more stocks should we experience any problems or a meaningful market pullback as it is always good to have a backup plan”
Whatever you decide to do with your €100,000 its best to do your homework and keep your options open.