Investment Management

Investment Management

Actively Managed Investment Portfolios:

Maximizing returns and minimizing risks are the goals of both active and passive investing. Both approaches can add value.*

Rather than buy-and-hold, active management focuses on flexibility. It allows managers to adapt to the current market ...Read More >

Segmenting "The Market:

While many investors may refer to "the market," there are actually many markets and many ways to segment those markets. One way to separate investments is to look at company size. Other common divisions are made by estimating potential growth (growth stocks), or by comparing current prices with an accounting value (value stocks). Momentum stocks are those that have outperformed the average during a certain time period. This segmentation, along with other areas of the market, may provide opportunity to those who understand them.

Understanding long-term and short-term trends:

There are specific areas of the market which have outperformed the general market over the long run (40+ years). For example: small-company stocks have outperformed large-company stocks; value stocks have outperformed growth stocks; and high momentum stocks have outperformed low momentum stocks ...Read More >

Tax-Efficiency for taxable accounts:

Tax consequences can be a serious wealth-management hurdle. Arthur Godfrey once said, "As an American I am proud to pay my taxes. But I'd be just as proud for half as much."

The goal of a tax-efficient portfolio is not to minimize taxes, but to ...Read More >

Investment Risks

Behavioral Risk:

The most difficult risk to control is behavioral risk because it has roots within the heart and mind of every investor. Emotion can lead an investor to act illogically and to interpret risk incorrectly.

The positive emotion that comes from making money may lead investors to feel that ...Read More >

When Is Risk the Greatest For Investors?

Overconfidence can lead to multiple mistakes. At the root of this emotional error is a hindsight bias that makes historical events seem more predictable than they actually were before they ...Read More >

Market Risk:

Overconfidence can lead to multiple mistakes. At the root of this emotional error is a hindsight bias that makes historical events seem more predictable than they actually were before they ...Read More >

Purchasing Power Risk:

Individuals who place too much of their money in safe, predictable locations may run out of money sooner than they thought possible. This is due to inflation, which results in the gradual erosion in the value of their money. Low-yielding investments may not even keep up with inflation. This is a serious problem. No matter what your goals, they should include beating inflation.

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