The fact is that you cannot get rich without taking risks. Risks and rewards go hand in hand; and, typically, higher the risk you take, higher the returns you can expect. In fact, the first major Zurich Axiom on risk says: "Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough". Then the minor axiom says: "Always play for meaningful stakes".
Liquidity of Various Investments
Cash, gold, silver, savings and current accounts in banks, G-Secs
Fixed deposits with banks, shares of listed companies that are actively traded, units, mutual fund shares
Fixed deposits with companies enjoying high credit rating, debentures of good companies that are actively traded
Low and very low
Deposits and debentures of loss-making and cash-strapped companies, inactively traded shares, unlisted shares and debentures, real estate
- Bearish stock markets usually precede economic recessions.
- Bearish bond markets result generally from high market interest rates, which, in turn, are pushed by high rates of inflation.
- Bullish stock markets are witnessed during economic recovery and boom periods.
- Bullish bond markets result from low interest rates and low rates of inflation.