Golden Rule Of Investment
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Transcript of Golden Rule Of Investment
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GOLDEN RULE OF INVESTMENT
•Diversification
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What is Diversification in Finance?
• Risk Management Technique
Mix a various investments into a portfolio, spreading out of investments to reduce risks
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Why Investors Need Diversification?
To protect yourself against downturns
To take maximum advantage
of market conditions
Two Major Reasons
1 2
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How to Make Diversification?The portfolio pyramid
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How to Make Diversification?Asset allocation
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Case I: Bankruptcy of LEHMAN BROTHERS•Investment banking•Equity and Fixed-income sales•Research and trading•Investment management•Private equity •Private banking
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Case I: Bankruptcy of LEHMAN BROTHERS•CDS, 1995•CDO•613 Billion $ Debt
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Case II: Imbalance make global recession
•Imbalanced world •$$$ is the “global currency”•Money fly into US, Economic leading country•Crisis share to global
World need diversification!!!
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Don’t forget in 2010:•Still in trouble•Sensitive•Inflation is coming•Diversification if investment (Half)•Reasonable Saving (Half)•Earn more money•Spend more money
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Thank you !&
Happy New Year!