Today, I will introduce you to a guy I only met through his writing. Indeed it is a blessing in disguise. His name is Francisco J. Olayco. An entrepreneur, a venture developer and financial adviser with over 40 years of experience.
He is the author of bestsellers: Wealth within your reach, making your money work, and Work Book for money. According to him, the quickest way to get rich is to get rich slow. In growing wealth, slow is fast. This inspirational words were taken from Mac Anderson.
This writing is a reflection of sort of his article which I believe an advice to young couples who are planning for their wedding. We are living in an unprecedented and unpredictable environment. Today's economic situation is getting worse and we do not know for sure how long the recovery will take and more importantly,nobody knows how the financial markets look like after the dust settles.
To be honest with you this is the first time I hear about Investment Banking and its difference to Commercial Bankings.
Further, he explains that Investment Banking does not require large amounts of capital as banks do because the Investment Bankers just create the instruments for companies/banks that needs financing and sell this instruments to individuals/companies/banks/funds that have the money to invest.
In effect Investment Bankers are the middlemen to "borrow" or use "leverage" to transfer funds from the investors He added that this practices was poorly regulated and in the end investors were victimized.
WHERE TO INVEST?
I believe You and I have the same concerns. Where to Invest Now? According to him, you need to define your purpose of investing. The three basic parameters will automatically define your financial goals namely;
1. How much time you have to accumulate the desired amount (example: how long you need to keep the investment active).
2. How much annual return (investment yield) you expect your investments to generate.
3. What level of risk you are prepared to assume.
Capital preservation is one of the major consideration in most investments. This means that avoiding losses is the number one criterion in choosing the investment.
SHORT TERM VERSUS LONG TERM
The longer the investment period, the lower the risk and the higher is the potential return. This is why for long term investors, it is very important that they leave their money alone once they have invested it. Allow the investment to compound over time, preferably five years.
When investing, consider one of his brilliant advise, "DON'T PUT ALL YOUR EGGS IN ONE BASKET" Strategic asset allocation is one of the powerful tools that manages risks and stabilizes earnings.
HOPE AND OPPORTUNITY
A most important principles, in the investment markets, "what goes down will goes up again" Another reality, Francisco Olayco said than even in the worst bear markets, there is a bull market somewhere.
In order to understand what bear and bull market is all about I copy this link from ESSORTMENT.
A bull market is one in which prices of a certain group of securities are rising or are expected to rise. It is a prolonged period where the investment prices rise faster than their historical average. In such times, investors have faith that the market will continue to rise in the long term. Bull markets can happen as a result of economic recovery, an economic boom, or investor psychology.
A bear market is an opposite of bull market; it is characterized by falling prices and an expectation that they will continue falling. When the market is bearish, it leads to a slow down of economy together with a rise in unemployment and inflation. In both the cases, people invest. Those who invest in a rising market and think that it will continue to be so are called bullish investors while those who trade in falling markets and think that it will continue to be so are known as bearish players.
I hope this article helps you a lot and live rich.
He is the author of bestsellers: Wealth within your reach, making your money work, and Work Book for money. According to him, the quickest way to get rich is to get rich slow. In growing wealth, slow is fast. This inspirational words were taken from Mac Anderson.
This writing is a reflection of sort of his article which I believe an advice to young couples who are planning for their wedding. We are living in an unprecedented and unpredictable environment. Today's economic situation is getting worse and we do not know for sure how long the recovery will take and more importantly,nobody knows how the financial markets look like after the dust settles.
To be honest with you this is the first time I hear about Investment Banking and its difference to Commercial Bankings.
Further, he explains that Investment Banking does not require large amounts of capital as banks do because the Investment Bankers just create the instruments for companies/banks that needs financing and sell this instruments to individuals/companies/banks/funds that have the money to invest.
In effect Investment Bankers are the middlemen to "borrow" or use "leverage" to transfer funds from the investors He added that this practices was poorly regulated and in the end investors were victimized.
WHERE TO INVEST?
I believe You and I have the same concerns. Where to Invest Now? According to him, you need to define your purpose of investing. The three basic parameters will automatically define your financial goals namely;
1. How much time you have to accumulate the desired amount (example: how long you need to keep the investment active).
2. How much annual return (investment yield) you expect your investments to generate.
3. What level of risk you are prepared to assume.
Capital preservation is one of the major consideration in most investments. This means that avoiding losses is the number one criterion in choosing the investment.
SHORT TERM VERSUS LONG TERM
The longer the investment period, the lower the risk and the higher is the potential return. This is why for long term investors, it is very important that they leave their money alone once they have invested it. Allow the investment to compound over time, preferably five years.
When investing, consider one of his brilliant advise, "DON'T PUT ALL YOUR EGGS IN ONE BASKET" Strategic asset allocation is one of the powerful tools that manages risks and stabilizes earnings.
HOPE AND OPPORTUNITY
A most important principles, in the investment markets, "what goes down will goes up again" Another reality, Francisco Olayco said than even in the worst bear markets, there is a bull market somewhere.
In order to understand what bear and bull market is all about I copy this link from ESSORTMENT.
A bull market is one in which prices of a certain group of securities are rising or are expected to rise. It is a prolonged period where the investment prices rise faster than their historical average. In such times, investors have faith that the market will continue to rise in the long term. Bull markets can happen as a result of economic recovery, an economic boom, or investor psychology.
A bear market is an opposite of bull market; it is characterized by falling prices and an expectation that they will continue falling. When the market is bearish, it leads to a slow down of economy together with a rise in unemployment and inflation. In both the cases, people invest. Those who invest in a rising market and think that it will continue to be so are called bullish investors while those who trade in falling markets and think that it will continue to be so are known as bearish players.
I hope this article helps you a lot and live rich.
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