Be cautious!

Be cautious! Over investing is a very wide spread phenomena especially in upbeat times. Over investing in any market and any asset class will lead you to a long term guaranteed disaster. And this is one of the rare things you can guarantee while investing. Investors In stock markets start over leveraging and go for junk stocks mostly where prices are less stable, and fluctuation parameters are big … ger as they are moved by vibe rather value and fundamentals. In Property investors will drift away from income generating properties and tend to reach out for under construction property where price volatility is more probable or over leveraging as the banks aren’t any wiser and start throwing funds encouraging investors to over invest or shall I say -gamblers to over gamble-. Past times proved that no one knows a peak otherwise past crashes wouldn’t have been that detrimental. No one knows the peak nor the bottom. Value investing will keep you on the right track, while adrenaline enthusiasts can -play around- with a small portion of their portfolios (not to exceed 15%) by investing into more volatile, none income generating assets to increase the possibility of having high rates of return, while not risking going under if times changed. Calculated risks gives you the ability to decide which risks can you afford or not.

Makram Hani