Most equity investors enjoyed nice returns for 2013 and it’s time to remember how these returns are calculated and the risks involved. Let’s be reasonable in 2014.
Return = current income + capital gains from growth – losses
It sounds simple if only we could know this figure before making the investment.
The absence of the crystal ball means we make educated guesses, never forget about the risk involved and monitor the heck out of it.
Types of Risk
The single most important thing your investment advisor can do for you is keep you well-educated on risks associated with your investments. They include:
Liquidity risk, Market risk, Inflation risk,
Industry risk, Political risk and Currency risk
If you have any questions about what they are and how they impact you, call.
Markets to Watch
Foreign Magazine, in the January-February 2014 issue, contains many interesting essays on global markets and what the future may hold. Most interesting to me was the list of the six “hot markets to watch”.
Mexico * Turkey *
South Korea * Indonesia *
Poland * Southeast Asia/Mekong River area
Investing abroad contains unique risks including political and currency risks so don’t take this as a recommendation to buy; it’s simply something interesting to discuss with your advisor.
Until next week,
Susan R. Linkous
Investment advice offered through
The Linkous Group, Ltd.
A Registered Investment Advisor
Securities offered through LPL Financial
Member FINRA and SIPC
The Linkous Group, Ltd. and LPL Financial are separate entities.