When beginning to analyze the market for where you want to focus your investments, it’s important to understand the different financial markets.
Diversification is key to a strong portfolio and it begins with the Top-Down formula which has Markets as the main first step.
4 Financial Markets to Understand, Dissect and Invest In
1. Sector Funds – most stocks will be found in sector funds that can range from technology to schools to healthcare and more.
2. Real Estate Funds – or better known as REIT’s focus specifically on all things in real estate. A huge benefit/bonus of owning in this sector is that they normally pay a higher than normal dividend yield.
3. Precious Metal Fund – the Gold and Silver market, considered to be one of the most volatile mainly go up and down with the inflation % and information.
4. Index Funds – the safer way to invest. This is used mainly by beginner investors since they seem, like me, to be told – ‘You Can’t beat the market!’ – We’ll see about that.