NZ Herald 29 January 2005
Q&As: Couple “retiring” in their 30s wonder how to invest their savings; 94-year-old share trader doing just fine; How to run a caravan rental business.
Q&As: Couple “retiring” in their 30s wonder how to invest their savings; 94-year-old share trader doing just fine; How to run a caravan rental business.
How to cope with the topsy turvy share market. The value of worldwide shares in a certain industry grew more than 52 per cent in the year ending last October. Why didn’t we hear more about it? A clue might lie in the fact that the industry was information technology — infamous for its volatility.
Q&As: Man with many rental properties does it the right way; Why do economists bother to make foreign exchange forecasts that are often wrong?
Q&As: You can make money by leasing out caravans; Economist confesses how bad all foreign exchange forecasts are.
Scattering the seeds: By diversifying, you reduce risk but not returns. Also in this issue: From the Mailbox — Some people over-save for retirement.
Stop loss strategy can in fact stop you from winning. A paragraph in a recent article in some of the newspapers that run this column caught my eye. “If you feel a bit more daring, yet want to retain a backstop strategy,” it read, “buy shares and sell them if they drop below 5 per cent of the purchase price. Sell once they increase above 10 per cent of the purchase price.”
Foreign exchange — the risk that often isn’t risky. Investing in offshore shares is riskier than investing in New Zealand shares, because of the foreign exchange risk, right? Not necessarily. For many people saving for retirement, it’s actually riskier not to invest offshore.