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Entries Tagged as 'active asset allocation strategy'

Should You Abandon Your Target Date Mutual Fund?

February 19th, 2010 · 1 Comment · AIP Money Management Tips

AIP Money Management Tip
 
The concept of target date funds was to provide investors a single fund to invest toward their “target date” retirement. The idea was the fund would become more conservative as it moved towards the target date, for example 2010 or 2030. In reality, these funds surprised investors with gigantic losses in this [...]

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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 [...]

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Consider Risk When Allocating Your Portfolio

November 30th, 2009 · 1 Comment · AIP Money Management Tips

AIP Money Managment Tip
 
Even if you’re able to generate considerable income, you have to know how to protect and preserve your capital. Investors who have employed a buy and hold strategy have lost a decade worth of growth. When the market just kept going up, it was easy to think it would continue and not [...]

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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 [...]

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Is Buy And Hold A Viable Strategy?

November 14th, 2009 · 2 Comments · Investment Planning, Portfolio Management, Risk Management

By Ken Faulkenberry
The purpose of asset allocation is to reduce volatility of the overall portfolio by holding different asset classes that are not correlated. Holding multiple uncorrelated assets means assets will be performing differently by rising and falling at different times. This helps smooth out returns; reducing volatility (risk) of the total portfolio.
 
A buy and [...]

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AIP Investment Alert – Insider Selling

November 4th, 2009 · No Comments · Investment Alerts

Insider Selling – What corporate insiders are buying and selling is an indicator of overvalued and undervalued stocks.  Who else knows the prospects and value of their company better than the people running the day to day operations?  So it pays to keep an eye on what insiders are doing, especially when the action becomes [...]

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How to Use Volatility to Your Advantage

October 27th, 2009 · No Comments · Portfolio Management, Risk Management

By Ken Faulkenberry
Instead of being victims of volatility, investors should use it to their advantage. Technology has increased the ability to trade assets worldwide and instantly. Technology also allows information and knowledge to be disseminated to investors faster than ever. What hasn’t changed are human emotions and investor reactions to the information they receive.  The [...]

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