ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Inflation
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Higher taxes
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Limited liquidity
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Lack of diversification
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Detailed explanation-1: -Savings should come first. Before investing, try to make sure you have a separate low-risk, low-return account you can use to cover expenses during an unforeseen event-typically at least three to six months worth of living expenses.
Detailed explanation-2: -Assess the market Just like a rising tide lifts all boats, buying stocks when the market is trending higher may increase your odds of a successful trade. Next, look at a major index’s moving average (which shows the general trend in prices over a given period) to determine the market’s momentum.
Detailed explanation-3: -Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking. Contracts for Difference (CFDs)
Detailed explanation-4: -Buy and hold. A buy-and-hold strategy is a classic that’s proven itself over and over. Buy index funds. This strategy is all about finding an attractive stock index and then buying an index fund based on it. Index and a few. Income investing. Dollar-cost averaging. 24-Jan-2023