Investment Strategies

Emotional Investing – Bad Behavior

Emotional and behavioral drivers are notorious for pushing many investors into poor results. All investors desire to buy low and sell high, but they often do just the opposite - chasing markets that are up and panicking when they drop.  Capital appreciation is an important part of investing, but of equal or greater importance is reducing losses.   A famous Warren Buffet quote states: "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."

Consider that while an investor that loses 10% only has to make 11% to break-even, an investor that loses 20% has to make 25% to break-even. Even worse, an investor that loses 33.3% has to make 50% to break-even!

 

Tactical investing invovles the use of defined investment strategies in an attempt to remove emotions form buying and sellig decisions.  Whether your a Do-it-Yourself investor or someone who wants to works with an advisor, Spark can assist you in implementing a tactical approach to your portfolio management.

 

If you chose to go it alone, you can build a portoflio to montior in real time with up to three strategies at Allocate Smartly.  For starters, check out the various investment strategies at www.allocatesmartly.com

 

 

Timing Strategies
 

Spark offers a number of timing strategies that use a 10 to 12 month moving average to determine when to be invested and when to be in cash. From a simple, single asset S&P 500 model to more complex portfolios that invest in S&P sectors and 5 major asset classes, Spark can tailor a timing strategy to be used as a stand-alone investment or part of an overall portfolio.

 

For more information on timing strategies visit Advisor Perspectives

Momentum and Value Strategies
 

Of all the market anomalies that have been identified over the years, momentum and value are two that appear to remain both effective and persistent. Spark offers models that incorporate relative and dual momentum and one that incorporates momentum and volatility. These portfolios are ideally paired with a single or weighted asset value strategy that has historically offered non-correlated return streams.

Visit this page for more information on our most widely used Investment Strategies

For more information on momentum visit www.dualmomentum.com

For more information on momentum and value, visit www.cxoadvisory.com