Meridian Capital Management Suggests Key Investment Strategies for Better Earnings
Summary
Money widely spread is better than restricting it- A typical investor should hold 20-30% of his stock allocation in foreign equities which includes his 5% in emerging markets.This means sticking with mutual funds and ETFs that hold investment grade ranking or are alternatively the highest rated junk bonds.Adding to this information, the Guide also states that short term bonds are more susceptible to losses in the face of the Federal Reserve pushing up interest rates.Steven Woodall, who heads the Portfolio Construction and Risk at the firm, writes, “This is the time to return to normalcy by accepting the probability of lower returns but also keeping in mind that the right risks can assure a reward balance by choosing the right investments.”The Guide highlights a few essential strategies that should be adopted in order to survive market swings:Keeping U.S. Stocks as Core Holding- They remain the best shot at staying ahead of inflation, especially when a bond portfolio is not expected to do very well.This has led to a finding by the firm that intermediate-term bond funds that have a reported yield of 2.25% in today’s market conditions, is definitely a reasonable option.In his conclusive statement as written in the Investor’s Guide, Mr. Woodall has this to say, “It is not always about winning but also about not losing out to the upswings of the global market.”Meridian Capital Management is a Hong Kong based investment brokerage firm that helps investors to achieve their investment goals through strategic trading, competitive returns and tailored solutions.