In a recent interview on Sonshine’s table talk, financial expert Elson Goh from EG Financial Services sat down with host Leah to discuss a wide range of investment topics. From cryptocurrency to property portfolios, Elson shared valuable insights and advice for both experienced and novice investors.

While many people associate investments with traditional stocks and bonds, Elson explains investments include anything that has the potential to generate a profit. From bottle cap collections to digital art, investments can take various forms. Elson stressed the importance of assessing potential cash flows to estimate an investment’s value. Without this, it becomes akin to gambling.

Cryptocurrency: A Volatile Asset

The conversation naturally turned to cryptocurrency, a topic that has generated significant interest and speculation in recent years. Elson cautioned against viewing cryptocurrency as a traditional currency. Instead, he categorised it as a digital asset or commodity due to its volatility and lack of inherent value. Elson highlighted how cryptocurrencies have become increasingly correlated with the stock market, making them a riskier proposition for investors.

Elson introduced us to Central Bank Digital Currencies (CBDCs), which are government-backed digital currencies. While many central banks are exploring CBDCs, Elson pointed out that these digital currencies aim to offer stability and control compared to cryptocurrencies’ wild fluctuations.

Property Investment: A Tangible Choice

Property investment was another topic of interest. Elson explained that property has historically been a stable investment due to its tangibility and the fact that banks often hold substantial real estate assets. While property prices have soared, he reassured that property investment is still viable for those willing to commit.

Diversified Portfolios and ETFs: A Safer Approach

For those with limited capital, Elson advised against investing in a single company’s shares. Instead, he recommended diversified portfolios through Exchange-Traded Funds (ETFs). ETFs allow investors to buy a basket of different shares, spreading risk and providing a safer investment approach.

Elson emphasised the need for investors to assess the risks they’re comfortable with in pursuit of potential gains. He stressed that understanding the purpose of your investments and weighing the risk-return trade-off is crucial. Have a listen to the whole conversation below: