Is it Time to Invest in Cyprus Stocks
With major Cyprus blue chips having lost more than 50% of their value during the last two years, it is common to encounter people asking around if the time is right to decide to buy Cyprus stocks.
As an authorized investment advisor employed at a regulated Cyprus Investment Firm, which among others also does forex white label solutions, naturally I maintain from expressing my views in public, since based on clearly defined rules, all regulated firms first make sure that the advise and service they intend to provide to their clients is in line to their needs. So as to determine this before we provide you with any opinion to our clients, they need to pass a number of tests to determine their idea of markets, investment objectives, risk Maiko Kawano , expectations, degree of diversification and other details that are necessary before one can express an impression.
But there are a quantity of general rules that one may follow, which over the long run can protect and give good returns.
One of the first rules for investing is not invest with money a person need to cannot lose. It an amazing huge difference if for investor you shall want the money in two months time to pay your child’s tuition fees or maybe if the money you are investing is excess capital that will not be needed for an established.
When investing in stocks, its best to cash major, well known stocks that are likely to stand up to the crisis and utilizing instances, even if they run into trouble, because of their size, the government in that nation rushes to their rescue.
Then comes the question of whether not really the company in the places you wish to invest is operating an environment where a genuine effort . growth or economic stagnation. After hitting a bottom in 2008-09, major developed economies have been growing at very satisfactory paces helped by cheap money offered by various central banks around the globe.
It is correct that in Cyprus, in the past two quarters, the recorded above expectation growth, but major Cyprus blue chips also have extensive operations in Greece, which unfortunately is bleeding.
Perhaps the substantial element for a lasting investor is whether the company in anyone are investing pays a dividend, and in case that dividend is rising and generated from surplus cash flow.
The dividend factor is very important since if purchase stocks that are trading at 8-10 times earnings, or are trading in order to book-value, then the chances of capital gains in the long run improves.
But the dividend growth element is pretty essential. Because understanding that the company has a reputation for increasing its dividends, you can reinvest and collect more dividends.
This is the practice known as “compounding.” It’s the safest, surest, easy build wealth globe stock market.
I believe every investor can answer if the time is right to buy Cyprus blue chips if they subject the major Cyprus stocks to the above questionnaire.