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 involves the use of defined investment strategies in an attempt to remove emotions form buying and selling decisions. Whether you are a Do-it-Yourself investor or someone who wants to work 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 portfolio to monitor in real-time with up to three strategies at Allocate Smartly. For starters, check out the various investment strategies at www.allocatesmartly.com
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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 a variety of factors but most have some combination of value and momentum (absolute, relative, and dual momentum). While no guarantees can be made that we will achieve our goal or achieve results better than a traditional buy-and-hold strategy, the primary objective of our tactical momentum and value strategies is to construct non-correlated return streams in an effort to reduce maximum drawdown and volatility.
Visit www.allocatesmartly.com for more information on some of 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