Are you milking bulls? Get your portfolio in shape in 2021

1. Are you milking bulls?

To start the year, investors should re-evaluate their portfolios. Although some investments may have yielded returns in the past, we must remember that not all investments are evergreen! Don’t hold on to assets and investments due to their sentimental value. If you do, it would only lead to lost profits. This is akin to milking bulls, where one would find no milk!

2. Don’t be like a bull at the gate.

Forging ahead, investors may be quick to jump into investments in their rush to make money. However, it is important to do prior research and match them to your evolving financial needs. Understand macro and market trends and don’t rush blindly into any investments, like a bull at the gate.

3. Be wary of cock-and-bull stories.

As the year progresses, investors may encounter attractive and promising investment tips. It may be tempting to invest in such assets as they seem like a surefire way to profits! However, just like a cock-and-bull story, some investment ideas may be greatly exaggerated. Remember to always to do your research and invest wisely. Speak to a financial advisor when in doubt.

4. Don’t be cowed into investments, rise above the herd!

It is common for individuals to succumb to group-think and peer pressure, where they follow a ‘herd mentality’ by investing in currently popular investment themes. Rise above the herd and do your own research. Make sure the investment thesis is backed by fundamentals and more importantly, understand how it fits into your existing portfolio.

5. Waiting for the cows to come home – not such a bad thing!

While making quick profits from an investment may be satisfying, investing often requires patience and a long-term perspective – you may need to be like the farmer waiting for his cows to return home. Instead of trying to chase market trends, consider long term investments which can bring greater stability to your portfolios.

At Eastspring Investments, we believe that diligent investment habits and actions matter. Get a head start this year and understand what really matters for the markets by reading our insights.

We would like to thank our intern, Luis Lo, for grabbing the bull by the horns and contributing this article during his time at Eastspring Investments.