Diversification By Dinar – How To Build A Stronger Portfolio
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| Dinar Investment is an Excellent Approach in 2015 |
Diversification is a risk-management technique, and it’s critical for success with any investment portfolio. The Iraqi Dinar can help you build a stronger, more diverse portfolio. By diversifying your risks properly, you’ll reduce overall investment risk, even for individual investments which are riskier than average.
Diversification maximizes your returns by investing in assets which react differently to the same geopolitical events. This means allocating investments between different asset classes, business sectors and other categories such as foreign currency investments like the Iraqi Dinar.
Although diversification doesn’t guarantee against loss, still, it’s the only practical way to achieve long-term financial goals while effectively managing risk. In fact, a diversified portfolio will generally yield higher returns and bear lower risk than the individual investments alone.
Benefits of the Dinar for diversification
First, the Dinar is a strong currency play. Holding the Iraqi Dinar (IQD) in your investment portfolio lets you own a foreign currency with outsized potential for gains.
The Dinar can be purchased at a low exchange rate now, before the expected upward revaluation of the currency. Once the revaluation occurs, there is enormous upside potential for Dinar investors.
Second, the Dinar isn’t correlated with mainstream U.S. investments. So, the price of the Dinar doesn’t necessarily move in the same way as ordinary, low-yielding investments do. Dinar investments aren’t correlated with the performance of such investments as U.S. Treasury securities.
As an example, if you own Coca Cola stock already, it usually doesn’t make sense to buy stocks of Pepsi-Co and other bottlers because it creates over-exposure because soft-drink bottlers are correlated businesses – If negative news in the marketplace affects one bottler, it usually affects all bottlers.
So, diversification addresses the problem of potential losses from near-duplicate investments.
By buying and holding Dinars, you’re diversifying into an independent market niche which is affected only by overall economic conditions in Iraq. And, the country’s economy is booming because of the rapid accumulation of rich oil revenues. The country’s financial numbers suggest that its currency is far undervalued right now.
This article Diversification By Dinar – How To Build A Stronger Portfolio was originally published at DinarInsider
Although diversification doesn’t guarantee against loss, still, it’s the only practical way to achieve long-term financial goals while effectively managing risk. In fact, a diversified portfolio will generally yield higher returns and bear lower risk than the individual investments alone.
Benefits of the Dinar for diversification
First, the Dinar is a strong currency play. Holding the Iraqi Dinar (IQD) in your investment portfolio lets you own a foreign currency with outsized potential for gains.
The Dinar can be purchased at a low exchange rate now, before the expected upward revaluation of the currency. Once the revaluation occurs, there is enormous upside potential for Dinar investors.
Second, the Dinar isn’t correlated with mainstream U.S. investments. So, the price of the Dinar doesn’t necessarily move in the same way as ordinary, low-yielding investments do. Dinar investments aren’t correlated with the performance of such investments as U.S. Treasury securities.
As an example, if you own Coca Cola stock already, it usually doesn’t make sense to buy stocks of Pepsi-Co and other bottlers because it creates over-exposure because soft-drink bottlers are correlated businesses – If negative news in the marketplace affects one bottler, it usually affects all bottlers.
So, diversification addresses the problem of potential losses from near-duplicate investments.
By buying and holding Dinars, you’re diversifying into an independent market niche which is affected only by overall economic conditions in Iraq. And, the country’s economy is booming because of the rapid accumulation of rich oil revenues. The country’s financial numbers suggest that its currency is far undervalued right now.
This article Diversification By Dinar – How To Build A Stronger Portfolio was originally published at DinarInsider
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