Investors who do not have the precious time to monitor the stockmarket and lack
the necessary expertise should consider unit trust as an alternative. Let's say after
realizing the potential benefits and rewards of prudent long-term investing you are
willing to sacrifice your precious time and do everything yourself.
Your next step would be to locate sources for obtaining reliable data. In this case,
newspapers alone will not help. Nor will conversations with neighbors and friends.
You may try to find a well-stocked public library but there are so few in the region.
Eventually, you will find that things are not as smooth as you thought.
Now, given that you have access to a wide range of information, then the next key
question is have you gained enough knowledge or experience to make full use of the
information? Will you be able to keep track of the market and your investment closely?
Any successful investment requires extensive market research and analysis plus vigilant
monitoring of economic and market environment. Unit trust or mutual funds in the
overseas markets like in the U.S. play an even more critical role when you are considering
cross border investments for diversification.
Normandy has long maintained that long-term investment makes good sense for growth
of ones wealth which is also the conventional investment wisdom in today's markets.
While a lot has been discussed about the benefits of long-term investments, there
are those who continue to bet in looking for short-term returns in the stockmarket
even after countless rounds of soured bets.
You should be patient enough to wait for your money to grow gradually. If you are
a stock psychopath, consider investing in stock unit trusts rather than betting on
your own. Adopt a long-term strategy and be a fundamental-driven investor.
In Malaysia, where the market is still at its infant stage, further development of
the capital market will likely lead to a fundamental-driven one.
In a pure fundamental driven market in the U.S., stocks have returned far more than
long government bonds and short U.S. Treasury bill, and have soundly outpaced inflation
over the long-term.
Remember that your short-term gains are not likely to secure your future well-being
- retirement. It is time for a change.