Meyer Japan on Why Asset Diversification Is Crucial To Financial Success?

There is an age old saying that it is not wise to keep all your eggs in the same basket, and there couldn’t be a bigger truth for the world of investments. Richard Cayne of Meyer Asset Management Ltd Japan, who holds over 17 years of experience as a financial consultant to Japanese clientele, says that anyone who truly wishes to protect and grow his/her wealth needs to acknowledge the above saying as their cardinal rule. Richard Cayne of Meyer Asset Management Ltd Japan mentions that for absolute financial success one needs to park their money in investment vehicles with varying risk and return capabilities.

Richard Cayne of Meyer Asset Management Ltd Japan explains that simply investing in different asset classes is not always going to protect your wealth against drastic market fluctuations. Even though each asset class has its own risk measure, they usually share the same price behavior, which is, prices escalating and deflating as the entire market goes up or down. Richard Cayne of Meyer Asset Management Ltd Japan says that investing in such complimentary asset classes will do your portfolio more harm than good, as a sudden dip in the market will have a magnified effect on your investments.

Richard Cayne of Meyer Asset Management Ltd Japan suggests that one must strive to find a good trade-off between risk and returns for a balanced portfolio. By allocating assets in varying risk, return and liquidity classes, you can easily safeguard your wealth and ensure it performs steadily on the growth parameter. In order to strengthen your portfolio as an individual investor, Richard Cayne of Meyer Asset Management Ltd Japan suggests that you should look into reading material, both online and off, to develop your knowledge base so that you may understand how different asset classes are correlated. You would need to equip yourself with the knowledge of how stock markets across the world might have an impact on your local real estate prices and how real estate markets can have a domino effect on the currency of your country.

Richard Cayne of Meyer Asset Management Ltd Japan says that those who do not have the time or energy to dig deeper into asset classes such as stocks, bonds, currencies, commodities, real estate, etc. and their correlation, should look to a professional financial consultant to help figure out an optimal scheme. The financial advisor, based on your current financial situation, future goals and return expectations will come up with the ideal mix of asset classes that also helps mitigate risk, while making your hard earned money work harder for you.