Saturday, February 27, 2010

General Thoughts

Notes from Mark Mobius

Hello, do you have any general thoughts for people starting to invest in the markets? - Andrea, Budapest

I believe it is important not to jump headfirst into any market without first deciding what risks you are willing to take. Also, you should separate the money you need for your daily life from the money you are willing to put away for a few years (preferably five years). If you do decide to invest, it is important that you invest your money not just in your own country but in a diversified global portfolio. In this way, the volatility of your holdings is likely to be less and you will gain exposure to markets all over the world. Dollar cost averaging is also important: put aside a fixed amount to invest every month and invest that amount regardless of the market level.

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