FourFour Two: A look at the biggest compound interest investing ideas
FourFourOne, a stockbroker and investor, is looking at what his portfolio might look like in five years’ time.
“I have a big portfolio in a lot of different stocks, so it’s not as though I’m averse to diversifying,” he said.
“There’s a lot more than just a single company.
There’s a whole bunch of them.
But the problem with that is that there’s a huge risk that you’ll miss out on some of the bigger ones.”
Mr Jones started investing in the early 2000s, when his portfolio was relatively small.
He said he started by buying low-yield corporate bonds.
That led to his buying shares of large, public companies, and then the bonds started to pay off, and he started investing more heavily in bonds.
He started buying government bonds in 2009 and bought the US government bond market in 2011.
Now he owns a large portfolio of US government bonds, and when he wants to buy more, he can.
In a world where the cost of debt has dropped, Mr Jones said he thinks it is prudent to buy bonds because they are cheap.
Mr Tandberg, from US mutual fund provider BlackRock, said the US stock market is not as risky as it used to be, but there are still risks, including in the stock market.
The market is still volatile, he said, and investors need to be aware of that.
Read more about stocks:Mr Toh said the stock markets have had a significant impact on bond prices in recent years, and the cost to investors has gone up.
So if a bond is going to go up in value, the more you buy it the higher the risk will be, he added.
“If you’re a pension investor and you’re getting a 5 per cent discount on your retirement, it’s going to affect your retirement,” he added, pointing to the high level of pension funds in the US.
Ms Taylor said the best way to manage the risk of a bond falling in value was to hold on to it.
“It’s better to hold it than to sell it,” she said.
“You should hold it as long as you can, as long the market goes up and it’s priced at that level, and hold on until it goes down.”