February 11, 2015
Those of you who are engaged in geopolitical news will recognize the ongoing turbulence between Greece and its creditors. Desperately trying to avert a default, Greece is still in talks to renegotiate bailout reforms with Eurozone partners and the International Monetary Fund.
According to this article the US and European markets enjoyed increases on Tuesday while investors remain optimistic that Greece will avoid a default, yet the chance of default still looms.
As an investor, it is important to understand international dynamics as they have real effects on the economy. This situation, while it presents a valid concern, shines a light on a more important overarching theme: you MUST understand your investments.
Know what you own, why you own it, and what the inherent risks are that you may be taking on. You can achieve this by working with an expert to select and understand where you are putting your money.
Here are few key takeaways that I have mentioned before but are steadfast:
- Be an investor. If you are in cash or money markets you are missing out on the potential for growth and returns.
- Focus on the U.S. We are positioned the best for growth, innovation, and long term success compared to many other countries.
- Stay in high quality companies. Grounding your investments in high quality companies that pay dividends, have good cash flow, and are well managed more often than not provide the base for a strong portfolio-one you will be able to hold and benefit from over time.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).