How To Deal With Market Uncertainty In Investment And Financing

　　 equity market The reason why it is attractive is that it is full of uncertainty while having a huge earning effect. For ordinary investors, it is expected to invest conduct financial transactions Getting rich is mainly to meet material needs and improve the overall living standard. However, if you are restless day and night because of the price fluctuation of the stocks or funds you hold, you may lose money because of small things. Then, how to deal with market uncertainty investment How about financing?

The first asset allocation. In order to avoid fear when greedy, it is very important to understand your risk tolerance. Investment often earns "time value", so different ages imply different risk tolerance and carry out corresponding asset allocation. There is an interesting "rule of 100", that is, subtract your age from 100, which is the proportion of high-risk products you can invest in such as stocks or stock funds. The rest of the funds can buy low-risk bond funds and money funds to establish a more stable balanced asset portfolio. In addition, some idle funds can be properly reserved to buy when the market bottoms out to obtain future excess returns.

Stock investment may as well follow the simple principle. The stock market is a place where investors gather to bid. The easier it is to understand the company's profit model, the easier it is to be recognized by investors. The reason why Warren Buffett invested in Coca Cola that year can be simply summarized as "brand advantage, distribution channel advantage and cost advantage".

Try to reduce the probability of making mistakes. Before buying stocks or funds, you should carefully confirm that their risk/return characteristics are in line with your risk tolerance. This part of "homework" is not optional. You must do enough and remember not to take it lightly. Funds generally operate through portfolios and have certain risk diversification characteristics. Therefore, it is not advisable to hold too many funds to avoid fluctuations that may affect long-term returns. The selection should take into account the balance between stocks and fixed income, domestic and overseas markets and other different investment varieties.

Short term entry and exit can be "small rich" at most, and long-term holding can be "big rich". Professional investors who pursue value investment generally despise short-term entry and exit. However, after the baptism of the once-in-a-century financial crisis, short-term access and setting stop loss points may also be one of the specific approaches to risk control. But the charm of investment lies in the fact that the risks and returns are ultimately matched. Short term entry and exit are lucky at most, "small rich", but difficult to become "big rich". As for how long the holding time can be called a long-term investment, it varies from stock to stock. We can apply the thinking of Peter Lynch, another investment master, to guide the operation: as long as there is no fundamental change in the reason for initially optimistic buying, we should firmly hold shares, so that we will not miss "Ten Bagger" (a stock that has risen ten times). The same is true of investment funds.