The Basic Concepts, let’s not forget.

With all the news of the ups and downs of the world stock markets, I think it is important to recap on the ISG basic concepts of investing that have been proven to be successful in both the BULL and BEAR markets:


BUILD – use monthly savings in small amounts every month to take advantage of the UPS and DOWNS of the world markets. Always invest in the highest growth potential funds over the next ten years. For this. We like the emerging markets. As they have a long term growth potential and also high volatility, which makes them most efficient for Dollar Cost Averaging.

PROTECT – when you have a lump sum or your monthly savings turns into a lump sum, then use ALTERNATIVE Investments to protect your capital. The idea of the alternative funds is to be non correlated to the world stock markets so they can protect your capital in all world market conditions: There is more to life then just stocks and bonds.

KNOW YOUR TIMELINES - You need to be comfortable with your investment timelines. Ask you’re self: “Am I saving for over 10 years, or less then 10 years?” If over ten years, then use a monthly saving to accumulate wealth and to also take advantage of the UPS and DOWN of the world stock markets. As for your Lump sum, ask how much you can invest for 10 years = long term high growth. Ask how much short term for 1 -2 years = Bonds, or fixed interest or cash, then the rest of the lump sum should be invested for the 3-9 year timeframe, and into Alternative investments.

DISCIPLINE - this is the one that is easier said than done, as we are seeing now. Many people are in a panic about the markets and will make moves that will end up costing them more in the future. The only way to avoid this is to have a plan. Keep the monthly savings going, and keep your big cash in Alternatives or low risk low growth funds, and you will be ok no matter what the markets do. We can’t beat the markets, but we sure as hell can set up investments to take advantage of the natural movements of the world markets. It was proven in the 2001 IT bubble, 2008 sub prime crash, and will be proven during these times as well.