Four factors should be considered when deciding on your alternative investment strategy. Here are a few thoughts on each.
Consider the importance of stability of principal, predictability of income, and capital growth. These must be considered against the risk and reward potential of the three categories of investment alternatives. To have maximum stability of principal, you could invest in cash equivalents. (more…)
For those who want to start as stock investors in bearish periods, this seems to be good opportunities for profit. But you must have excellent bear market investing strategies to invest and earn in a bearish stock market.
No doubt that bear market is critical periods in which to invest seems impossible. (more…)
The capital allocation line shows the risk-return trade-offs available by mixing risk-free as- sets with the investor’s risky portfolio. Investors can choose the assets included in the risky portfolio using either passive or active strategies. A passive investing strategy is based on the premise that securities are fairly priced and it avoids the costs involved in undertaking security analysis. Such a strategy might at first blush appear to be naive. However, we know that intense competition among professional money managers might indeed force security prices to levels at which further security analysis is unlikely to turn up significant profit opportunities. Passive investment strategies may make sense for many investors. (more…)
It would be a mistake to think that all the facts that describe a particular investment are or could be known. Not only may questions remain unanswered; all the right questions may not even have been asked. Even if the present could somehow be perfectly understood, most investments are dependent on outcomes that cannot be accurately foreseen. – Seth Klarman – (more…)
If you are in the market for an investment loan one thing you should remember is that just like your investment decision process as to which property or shares you might wish to acquire determining the right investment loan for your acquisition should be a thorough process because there is no doubt it having the right investment loan will impact positively on your ultimate investment return. (more…)
An investment portfolio is simply a collection of investment assets. Once the portfolio is established, it is updated or “rebalanced” by selling existing securities and using the proceeds to buy new securities, by investing additional funds to increase the overall size of the portfolio, or by selling securities to decrease the size of investment portfolio. (more…)