Markets are trembling and exciting times are ahead. With a lot of uncertainty come loads of opportunities. How do you spot them? How do you ensure your portfolio remains on track? These questions are crucial for investors to stay ahead of the game and come out of this turbulent time stronger. When it comes to investing, there are several principles you should adhere to according to decades of investment experience. In this article, we will dive into these principles and also learn how you can best keep track of your complete portfolio in these fast-changing times.
Diversification of your portfolio
This might seem like an easy statement, but it is key to long-term portfolio growth. By diversifying you ensure you are exposed to many markets and industries. This proves useful over a longer period. Industries change, and when you have a diversified product such as a world-covering ETF, you will be able to ride the new waves. When new industries emerge, you automatically will be investing in those through the ETF. Another advantage is the fact that it is not research intensive. You do not need to read into new technologies and industries, as the ETF will automatically adjust for them.
Continue to invest to lower your average purchasing price
When there is an economic downturn, lots of people refrain from investing. They wait until the clouds clear and the sentiment in the market is better. However, it is better to continue to invest and lower your average purchasing price. Although it does feel counterintuitive to buy when prices continue to dip, it is better in the long run.
Be cautious with emerging markets
Emerging markets are promising in good economic times, but can be challenging when there is an economic downturn. With surging inflation, emerging economies generally have a harder time coming by. This is especially evident in the times of the Russian invasion of Ukraine. With rising fuel prices, many emerging economies are running into difficulties. A good example is Sri Lanka, a country that has formally declared bankruptcy.
Naturally, there are also many opportunities within this domain. A good example is the rise of Vietnam’s economy after the COVID-19 pandemic. It helps to track these trends and keep an eye on these opportunities to grow the value of your portfolio.
Getting the insights: tracker technology
A stock tracker app can help you in creating a holistic overview of your portfolio. You can integrate directly with brokers through API, and also have insights into other assets such as crypto. This is combined with the latest stock market news and pricing fluctuations, so you have the latest view on the macro and microeconomic components.
Leaders in the field of stock tracking
One of the leading applications in this field is the delta.app. They can combine a broad range of assets including stocks, bonds, and crypto. Delta is also including non-fungible tokens (NFTs) in their application, allowing you to track the value of unique digital assets as well.