A Guaranteed Income Booster You simply Can't Ignore!
If you want to discover how to add R1.1 million to your bank balance tax-free...
#1: This asset helps you avoid the two biggest risks investors face
Have you ever heard of market risk and valuation risk?
If not, it’s important to know them.
Market risk is the risk most investors focus on. It’s the risk that your investments will decrease in value when mayhem hits the market.
While, valuation risk is the risk of paying more for what an investment is really worth.
Generally, investors who buy stocks are most exposed to valuation risk as they often make the mistake of overpaying for a stock.
Here’s how this asset protects your portfolio from market and valuation risk…
#2: This asset serves as an anchor within a portfolio to limit losses during periods of volatility
This assets combats losses and volatility simultaneously.
Let me explain using an example…
A 20% market decline in a fully invested portfolio results in a loss of 20%.
By reducing market exposure to 80% with a 20% allocation in this asset, the same market loss results in a portfolio loss of 16%.
A 60% market exposure will reduce this loss to 12%.
And so on.
You can see that this asset can keep your losses as low as possible. It just depends how much you allocate to your portfolio.
Pickpocket Trader makes 323% gain on one trade
Were you one of the lucky Pickpocket Trader subscribers who cashed in on this huge profit on the US500?
The asset I’m talking about is…
Cash investments can include money-market funds, Bank deposit fund, fixed-income funds, RSA Savings Bonds or just cold hard cash.
Yes, cash is boring. And investing in it certainly won’t make you rich.
But investing in cash is vital to protect your portfolio through tough times. So it’s always god to have at least 10% of your portfolio allocated to cash investments.
See you next week,
managing Editor, Real Wealth