1. The velocity of money circulating in the economy is very low. The growth we are experiencing right now is from massive government spending and expansion of the money supply. The Federal Reserve has kept short-term rates near zero and provided extremely loose monetary conditions. They have little left to help the economy if it [...]
Entries Tagged as 'Risk Management'
Five Reasons to be Cautious Now
January 22nd, 2010 · 2 Comments · Economics, Investment Planning, Risk Management
Tags: Arbor Investment Planner·asset allocated portfolio·blue chip stocks·commercial real estate·credit expansion·diversified portfolio·dividend stocks·economy·expert stock picking·high unemployment·homeowner's equity·insider selling·loose monetary conditions·money supply·portfolio asset allocation·U.S. consumer·unemployment rate·velocity of money
Portfolio Rebalancing: A Powerful Risk-Control Strategy
December 27th, 2009 · 1 Comment · Portfolio Management, Risk Management
By Ken Faulkenberry
Rebalancing is one if the most under utilized and under appreciated aspects of investing. An active asset allocation strategy, which requires frequent rebalancing based on current opportunities and risk, is the most successful strategy in today’s investment environment.
The purpose of diversification is to reduce risk by holding investments that will behave differently at [...]
Tags: AAAMP·active asset allocation strategy·Arbor Asset Allocation Model Portfolio·Asset Allocation·buy and hold strategy·buy low·diversification·Investment Management·portfolio rebalancing·rebalancing·risk·risk-control strategy·sell high
Economic Update – The Challenges We Face
December 7th, 2009 · 1 Comment · Economics, Investment Planning, Portfolio Management, Risk Management
By Ken Faulkenberry
The economy is going through profound changes trying to absorb the shock of two bubbles in one decade. We are currently facing high unemployment, large and growing deficits, and a ballooning national debt. Instead of implementing sound fiscal and monetary policies, government policies of the past decade have and are compounding our long [...]
Tags: AAAMP·AIP·Arbor Asset Allocation Model Portfolio·Arbor Investment Planner·Asset Allocation·baby boomers·deflation·diversification·economic update·inflation·mutual funds·over diversificaton·re-balancing·under diversification
Analyzing Risk
November 27th, 2009 · No Comments · Portfolio Management, Risk Management
Volatility (risk) doesn’t seem to bother most Investors during bull markets. This is one of the reasons Investors are “lulled” into taking on additional risk as markets rise. The collapse of the credit and housing markets and the resultant damage to investments should cause everybody to pay more attention to risk.
Studies show that investments with [...]
Tags: active asset allocation strategy·buy and hold strategy·risk·stock market volatility
Investment Lessons from John Templeton
November 20th, 2009 · 2 Comments · Investment Planning, Portfolio Management, Risk Management
John Templeton was one of the greatest Investors of all time. He said “It is impossible to produce superior performance unless you do something different from the majority” He believed to succeed as a contrarian investor, you must recognize what the crowd believes, understand why the majority is wrong, and have patience and conviction to [...]
Tags: 401k·contrarian investor·diversify·free enterprise·free markets·investment plan·IRA·John Templeton·minimize taxes
