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• Capitalism will remain the world’s preeminent economic model and will continue to provide a steady return to those invested in it. • On average, certain types of security (stock/bond) will perform better than others over time, so it is worthwhile focusing on those in a portfolio. • Holding a high number of securities will help manage risk and increase the reliability of investment returns. You could of course argue that these statements are predictions themselves because they relate to future events. But which would you rather have form the basis of your investment strategy? These three statements - or, as is the case with many investment strategies, the changing guidance of a

small group of investment insiders (or so-called experts)? Some forecasts, however, are worth making in relation to your financial planning—generally those over which you have a degree of influence. For instance, when do you plan to retire and how much money you will need to

meet your future financial commitments. Sensible judgements like these are key to forming an effective financial plan. Making fun forecasts about sports results or speculating about the direction of a particular currency or the fate of the Eurozone is one thing. Basing an investment strategy on them is something else altogether. The tried and tested formula of understanding your objectives, understanding your risk, understanding the appropriate investments to meet your objectives, and importantly to review on a regular basis will make you feel so much better that you are on track to meet your goals at this time of market volatility.

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Clyde Life Magazine | 7

Clyde Life February/March 2016  
Clyde Life February/March 2016  

A lifestyle magazine published bi monthly and delivered to 15000 housholds in Inverclyde and West Renfrewshire, West of Scotland