What results have you done with your investments in 2009? What lessons have you learned from the financial crisis that we have known? The final results are communicated to you in February or March 2010 according to the company. I got mine a few days ago. What results did I get those details after you have the previous 3 years? What lessons I've learned that you could use?
How I made my investments with +88% on 2009 Regular readers of Richest remember from my previous years' results and especially the fact that gross over a year is not interesting in itself. You must put it in perspective with the long term and your goals, and by the market. In 2009, my investments earned more than 88%! A result that I never thought possible and which is particularly ironic that this is the year where I am less busy.
I find this result exceptional, but with losses of over 57% in 2008, the year of the financial crisis, it's like I lost two years. After such a crisis that nearly all my losses are sponged in a year, I have nothing to complain. But ultimately, it is better +23.7% gain in 2007 as than 88% after one year to -57%. With +60% in 2006, the toll in four years is still very positive.
I am providing these results as an example of what is possible for someone who does not know much and does not devote much time. A minimum anyway. In 2009, I have absolutely nothing changed compared to 2008. My investments are invested in the same fund, which funds are very risky emerging countries. Their list is present in articles on the results of past years .
Fund risky means I do not advise you to do the same thing. Provided my reasoning is simple: I invest for the long term, some twenty years, so my capital to maximize the end, I have to build up early, taking risks. I can take risks, make mistakes and learn from those mistakes, because I have time. When I will control even more investments and the amounts involved will become very important, I would take fewer risks and secure earnings.
The year 2009 shows me realize that 88% a year is possible. It is the work of previous years is bearing fruit, even if the financial crisis has delayed a year. I chose the funds on areas where I believe most in the years to come and to which I remain faithful because I know that they are the best funds to reach my financial goals. What is interesting now is to do better by analyzing past mistakes.
How to do better by learning from the crisis
First
education, withhold funds with the highest performance is not enough. Past performance is no guarantee of future performance, you know. But mostly, it's not because you have the best sector funds, the sector itself will not collapse. The 2008 financial crisis reminds us more severely when no sector works. Seek first what are the areas where you feel for years to come and invest in the best funds in this sector which gives you access to your contract. Hence the importance for me to have access to hundreds of funds from your contract. If you have the choice between ten promising funds 5 years ago but not today, your gains will be high.
Second lesson, and the faithful readers will recall that I wrote in the middle of the crisis: the best performances are held in the worst moments , just after a sharp decline. Then there is great turmoil: the large historical losses, came the big gains, in moments of panic successive moments of euphoria in the markets. You must therefore always be on the market, to become eligible. Hence the 88% that I can view in 2009, the year of economic crisis. +88% This means that nearly doubles your money in one year!
third lesson, again a confirmation of what I wrote you in a financial crisis , you must have a sufficient mental strength to not sell in a crisis. If like me you do not have time to follow your funds during the week of the year (A little Margaret was born in early March, for those who have followed the previous articles on the budget of a newborn ) you can not always be reactive and sell before he suffered too many losses when markets collapse. If you sell, you realize your losses. As long as you have not sold, you have lost nothing. The proof that I wasted a year, during the worst financial crisis since 1929, I recovered the following year! If I sold, I'd never given me: confidence was lost, he would have taken years to make up for losses Loved +10% or +20% per year.
Fourth teaching. In a crisis, the ideal would be to sell at the very beginning, when prices are still high, then buy when prices are lowest. It's a risky strategy because you can not know with certainty whether prices will continue to fall or will begin to rise. The newspaper is made of ups and downs. You could automate and sell from 20% loss and buy back after a 50% loss. But if the price never reaches the 50%? If they go back after having sold at -20%, you buy back more than you have sold? If you are sure you have the best funds on the best sectors, why sell them? Hope to win even more, but in return, you greatly increase your risk. If like me you've taken risks with very volatile fund, why take more risks? Taking too many risks, they become confident to achieve. Especially since the fund is more volatile, the more it is unclear whether the trend upward or downward is sustainable or not. Without moving, being sure of your choice of funds, the crisis is quickly erased.
You can find more lessons by reading the articles on my previous years' results listed below. And you, what were the results of your investments in 2009? What lessons have you learned in the years to come? Are you aligned with your financial goals long term?
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