Investing in stocks, bonds and government securities. What is the best investment during the crisis?

Having a heritage to defend and do not know where to orientate in this time of crisis the euro area and the global crisis in which reigns particular uncertainty in the markets.

Some investment advice for those who want to 'protect' a figure of around 100 thousand euro, propose to navigate, always in a diversified manner, to bonds, equities and bonds.

First of all, experts advise to choose the equity component obviously based on the risk tolerance and your time horizon (for an aggressive risk profile, particularly the incidence of equity may also exceed 50%).

Better not prefer individual stocks, as the financial dowry is not so high as to allow a portfolio of individual stocks too structured and risks are then outweigh the potential benefits.

Another tip for those who have to invest a sum of 100 thousand euro is or choose a fund or an international equity ETFs, while the bond component of the portfolio, which assumes a weight of at least 50%, preferably alongside foreign currency bonds or bonds of countries emerging.

Doing some examples of possible portfolios assumed, for those who have a lower propensity to risk, better to insert one share of around 20%, thus avoiding excessive imbalances of tools at higher risk. You can then maintain about 20% in cash.

The euro area bond component (corporate and government bonds) may represent 50% while the remaining 10% can be allocated to bonds in international currencies. But the one who loves the risk and want to try your luck may come to invest 60% in equities then pointing their investment products that diversify the choices, such as a mutual fund or an ETF international equity.

A portion of the equity exposure may instead be focused on the indices of the euro area and the rest of the portfolio may be earmarked for investments in the bond business.

 

20/08/2012

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Translated via software

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Source:

Italian version of ReteIngegneri.it