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ОСИГУРРУУБВРАИЊКАЕ
Saso Arsov
The author is Professor of Faculty of
Economics at the University
“St. Cyril and Methodius“ in Skopje
ation, it is risky to make investments deposits is recommended for this pur-
in shares and similar investments be- pose, and for a larger amount, in bonds
cause in the short run the shares’ pric- with fixed interest rates, as well as in
es may reduce, that is, we cannot sell bonds with regular and high amounts
the purchased shares when this is nec- of dividends.
essary. It is recommendable to invest
in banking deposits, investment funds One portfolio or several “piles”?
oriented towards short-term invest- This is an interesting question for
ments (deposits), short-term securities which the science of portfolio man-
(state and commercial papers) etc. agement and practice diverge lately.
Namely, the portfolio theory for many
2. Larger amount of funds, possible years promotes the principle of a sin-
needs of liquidity, longer time horizon gle portfolio where the investments
(3-7 years). The longer time horizon are mutually appropriately correlated,
provides us a possibility to think about which contributes for the reduction of
more risky investments such as shares, risk and the realization of an optimal
however the possible need of liquid as- relation between the expected yield
sets requires vigilance and appropriate and the risk. On the other hand, the
balancing of the portfolio with partial modern behaviorist theory of finance
allocation in short term deposits and reveals that people today behave as
securities. Still, one must consider their ancestors, that is, they distribute
that the economic cycles, therefore their funds into several piles, each of
the cycles in the stock exchanges last which has its own purpose – one is to
between 8 to 10 years, whereby the in- save money for a holiday, another one
vestments in shares in the short run is money for a new car, the third one
could be risky. includes the assets intended for edu-
cation of their children etc. Such ap-
3. Large amount of available assets, proach cannot be assessed as wrong,
long time horizon (more than 7 years). however one should consider the basic
Such situation gives us an opportuni- principles that we spoke about in all
ty to undertake greater risk through these editions. Hence, the money in-
investments in a portfolio of shares, tended for recent spending would be
more risky investment funds, and if we kept in the most liquid form, the ones
have sufficient funds, investments in for medium-term purchases (a car) can
real estate as well. If the capital mar- continuously increase in a bank as a
kets reduce, due to their cyclical move- term deposit, and the money intended
ments, we would have enough time to for education of the children can be in-
wait for another increase of the prices vested in long-term zero-coupon bonds
of shares, thereby to annul the losses, or a specific portfolio of investments
or even to turn them into debts. The could be made from them.
ones who cannot submit temporary
falls of the prices of shares (due to psy- Regular reassessments of the strat-
chological or financial reasons), should egy. We saw that the portfolio strategy
not invest in shares and similar assets. is based on the individual characteris-
tics of the investor and the objective
4. “Retirement” portfolio. Such a circumstances. Both are subjected to
portfolio refers to everyone who needs changes and for this reason, the port-
regular, stable cash flows, and are not folio strategy should be regularly re-
able to submit greater losses of their assessed. This should be performed at
funds, and they do not have a way to least once a year, and in addition reas-
earn more significant amounts in the sessment should be performed in an
upcoming period. Investment in bank
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