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 [...]
Entries Tagged as 'risk'
Portfolio Rebalancing: A Powerful Risk-Control Strategy
December 27th, 2009 · 1 Comment · Portfolio Management, Risk Management
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
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 [...]
Tags: 401k·AAAMP·active asset allocation strategy·Arbor Asset Allocation Model Portfolio·asset allocaton·bonds·buy and hold strategy·compounding·Cut Tax Bill·IRA·money management tips·money tips·REITS·risk·tax-deferred accounts·utilities
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
Diversification – The Critical Element of Portfolio Management
August 8th, 2009 · 1 Comment · Investment Planning, Portfolio Management, Risk Management
By Ken Faulkenberry
Diversification is the single most important element of investment planning. Diversification is a portfolio strategy that reduces risk by combining different investments that are not correlated. The volatility (risk) of the portfolio is reduced because not all asset groups, industries, or stocks move together. The goal of diversification is to reduce risk.
Lack of [...]
Tags: active asset allocation strategy·asset allocated portfolio·Asset Allocation·asset groups·company specific risk·diversification·etf investing·etf portfolio·etfs·fund management risk·industry risk·Investment Planning·lack of diversification·market risk·model ETF portfolio·model investment portfolio·over diversification·Portfolio Management·portfolio strategies·reduce risk·risk
