Wealth Accumulation

If anything has been learned from the current financial crisis, it is that those who thought that their once-trustworthy bank or savings provider was synonymous with safety were gravely mistaken. It is clear that we can no longer rely upon these organizations to remain solvent when they have engaged in the purchase of poorly collateralized assets that defy belief in their imprudence. We can no longer rely upon governments and their central banks to safeguard the purchasing power of our money when they continue to print it with careless abandon.

 More than ever, it is essential that individuals and families take responsibility for their future financial well-being. The sheer scale of wealth destruction since the crisis began has been breath-taking. Pension funds, endowments and other investments have been decimated by precipitous falls in value and, to add insult to injury, what remains is being systematically eroded by quick-fix monetary and fiscal policy which devalues the currencies in which our wealth is held.

The most reliable way to accumulate wealth is via long-term investment in assets that will gain sufficiently in value to make up for the effects of the inflation the world’s central banks are foisting upon us. Once the target has been reached, it is extremely important to make the transition from wealth accumulation to wealth preservation carefully and swiftly.

Omega Trading is well-placed to help clients assert control over their financial futures. We act as a buffer between the hyperbole and seemingly perennially conflicting advice swirling around in the media. We do this by basing our recommendations on sound research – both fundamental and technical – and by focusing on long-term plays.

We utilize a very common-sense approach to wealth accumulation. With your co-operation, we categorize your objectives and financial aspirations. We then look at your income, your existing investments (if any), your outgoings and we gauge your tolerance to risk. Unsurprisingly, the majority of clients want spectacular growth with the minimum of risk and, in Utopia, this would be possible. Sadly, however, scintillating gains tend to come with the risk of significant loss so a client with a very low attitude to risk but a lofty goal for return on investment will need to compromise by either raising their risk tolerance or by moderating their targets.

Omega Trading constructs portfolios that conform to clearly defined asset allocation theory. We believe that asset allocation is one of the most important stages in the investment process and this is supported by compelling evidence.

The information obtained during our initial assessment is used to decide upon the optimal spread of your capital between equities, fixed interest, commodities and mutual funds. This allocation represents the cornerstone of your portfolio and is carefully monitored to make sure your investments remain on target to meet your objectives.

Of equal importance is the selection of the individual investments that will form your portfolio and it is here that our unique balance of judgment, proficiency and expertise pays dividends. The high quality analysis provided by our experienced research teams is unleashed to enable us to select stocks in sectors that stand to prosper in the medium to long term but which offer acceptable risk profiles.