The sagest piece of advice that Michael Korber, Head of Fixed income and Credit at Perpetual Investments, received went like this.
“It’s a lot easier to make money if you don’t lose money to begin with.”
While it may sound easy, in reality it’s something many retail and professional investors struggle with given the temptation to trade and chase what seems like the next best thing but often turns out to be a dud or wasn’t given the chance to grow. Investors in this situation eventually find that as the losses mount, the greater the return required in order to restore their initial capital. Here, Korber suggests why a better approach could be to own a diversified portfolio of high-quality investments, sit back, and let time do the work.
Make sense of the fixed income landscape
Fixed income in a portfolio can provide liquidity, regular income and diversify away from equity risk. Essentially, fixed income assets should provide some certainty and predictability, which can be the defensive anchor of a portfolio. Find out more here