Contrary to the general belief, successful decisions for investment do not need a high IQ. One must have a logical mind for making judgments and the ability to control emotions from making a wrong investment choice.
Kavan Choksi Singapore speaks on smart investments
Kavan Choksi Singapore is a business and finance expert with sound knowledge of investments, business, and finance. When it comes to the deployment of capital, he says that keeping in mind the safety margins is very important for the investor.
The rates of interest are rising, and this is affecting investments so getting into the equities markets needs financial awareness and education. There have been critical sell-offs in the fields of technology to cryptocurrencies in the market, and expectations are rising among traders.
Investors should be aware of the investment choices they make
He states there are several investors in the market that are making poor choices because of their manic-depressive behavior when they succumb to the group’s views about the current stock market expectations. In such a scenario, the investors and their thoughts actually become their worst enemies and stop them from making the profits they deserve. Most traders become emotional, and this is why they cannot remove themselves from the dip in the markets, and this gives rise to negative influences.
Simple rules for the allocation of capital
He says that when it comes to the allocation of capital, the trader should remember three basic rules, and the first one is that one should never put all of their money in one stock. There is always a possibility of a disruption of business, and in such an event, you risk losing your money.
The second tip is that the investment you deal with must give you a profit and translate into a good dividend in the stock market. The yield in the cash flow should accrue directly to the investor, similar to the real estate markets. Kavan Choksi Singapore states that when the share dividends or the real estate yields fall, the assets in the market become overvalued, and they emit warning signs.
The third and final tip is that one should always use the safety margin when it comes to the deterioration of the economy in the nation. You will find that companies and assets start to exhibit endurance in the generation of cash ability during this time and will outperform in the long term. Investors should understand the above rules before they invest in the stock markets, he says.
The efforts of the UAE government for asset development
When it comes to the UAE government, they have been proactive in its strategies for asset development in the nation. He adds that right from DEWA to Tecom, these reputable businesses have shown consistently compounded returns through the slumps and boons of their business cycles in the nation.
They rely on a safety margin that makes them make investments that are hard to ignore. Their strategies are responsible for meeting the rising costs per capita in the region successfully.