Long-Term Strategies for the Investment Information System

Abstract

The demand for personal asset allocation planning is rising in this M-shaped era. The diversification of financial products is also on the rise in order to comply with the trends of internationalization and globalization. It is essential that investors perceive their own investment preference and risk tolerance, and understand the operation and risk of each investment vehicle. In addition, investors should choose investment vehicles to accommodate their needs, to develop their investment strategies and methods, and to conduct an effective asset allocation and financial planning on their assets. The trick to fund investment for the investor is to have a healthy investment mentality. However, it is always easier to plan than to actually act put into practice. The sentiment reflected from investment varies as the expectation and risk preference differs for every individual investor. Besides, some investors are weak in self-control and easily influenced by the market and environment, the unsettled sentiment can thus impact the realization of the ultimate fund yields. The importance of adopting appropriate investment strategy is attracting attentions as the implication beneath buy low and sell high can be seen through long term observation to the full economic cycle. This research assessed the performance of investment strategy by using investment information system to select long-term investment strategy. The data used in this study are Taiwan stock exchange weighted price index and the United States Stand & Poor's 500 index (S&P 500). The result has showed the highest return could be obtained from the lump-sum investment strategy.