GENERATE INCOME

5.0 WHERE TO FROM HERE?
While the scale of the recent turmoil in global markets has no doubt affected
investor confidence, share market volatility is not new. It is important to
remember that all investments regardless of asset class go through cycles of
boom and bust.
The key to generating ongoing wealth is to understand your investment
requirements, to ignore the investing fad of the day and to focus on
implementing strategies that have been proven over time. Successful
investing is about having a long term perspective and the time invested
in the stock market. It is also important to invest in companies that are
fundamentally sound, which employ experienced management teams and
deliver consistent dividends.
Not trying to time the stock market is integral to creating wealth. Trying
to pick the top or bottom of an equities cycle is extremely difficult and it
compounds the risk of being out of the market if it should rally. While this
strategy does not provide protection from market downturns, it does ensure
investors benefit during times of market growth. When markets turn, they
can turn quickly.
History has shown that no single asset class outperforms year after year,
which is why diversifying your investments can help to minimise risk. While
portfolio diversification often starts with investing across different asset
classes, it also includes holding a spread of investments within a single
asset class. With the rise of different instruments listed on the ASX, it is now
possible to gain exposure to different asset classes through your Bell Potter
adviser.
By ensuring that your portfolio has a mix of the various ASX listed assets
that Bell Potter advisers have access to, you can take advantage of the
benefits that diversification brings. A portfolio that is diversified and properly
weighted is critical to delivering successful returns and minimising risk.
Three examples of alternative assets that can help diversify your portfolio are
Fixed Income products, Listed Investment Companies (LICs) and Exchange
Traded Funds (ETFs).
At Bell Potter we have dedicated specialists, who cover these three different
products. We produce a number of different documents and independent
research, which covers these various areas.
Fixed income: An investors guide >
Learn the basics: LICs >
Learn the basics: ETFs >
If you would like to discuss your portfolio in the context of the current
macroeconomic environment please contact us at 1300 0 BELLS (1300 0
23557) or info@bellpotter.com.au.
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