SmartStops = Smart Beta

SmartStops = Smart Beta

Yes, our premise for needing more risk-based approaches in the market has been validated with the rise of Smart Beta ETFs.    As the image below points out – access to “risk premia” previously only available through expensive active strategies in a cheaper way” . Entire article here:  http://smartbetacore.com/uploads/00860_Benefits_of_Multi-Beta_Multi-Strategy_Indices.pdf

Will the stock market ever catch up to our volatile President Trump?

SmartStops comment:   It’s alarming to think that Trump has no senior trained economists in his midst.  And that one who has given some advice has been told to keep quiet. “The stock market is up about 15 percent since the election — despite the considerable turbulence that President Trump has wrought. Sooner or later, goes the thinking, a volatile president will mean volatility for markets…” The big question is has the...

Markets take the stairs up and the Elevator down

SmartStops comment:  Great article about the nature of our 21st century markets and why one needs to stay protected in a fluid geopolitical environment .  Some interesting graphs are presented. The article concludes:    Perhaps more than any other time in the last six decades, the fate of markets is inextricably intertwined with the ebb and flow of geopolitics. Investors can no longer hope to conceptualize markets as existing in anything that...
Earn higher returns by avoiding the downturns

Earn higher returns by avoiding the downturns

Just look at how much per share one could save in this example with IBM below.  Stepping aside during a stock’s downturn can lead to higher returns overall for your investments especially when you consider that stocks on average will drop ~20% from their highs and market leaders can drop ~70% (per Investor Business Daily stats).     Buy & Hold philosophies have morphed to Buy & Protect as many studies have shown the increased...

Why Investors Face Roller-Coaster Markets

This article does a great job at educating mainstream investors and the underlying aspects of our 21st century market.  Written by the Chief Economic Advisor, Allianz and Chair of the President’s Global Development Council: Key points: Because today’s markets are heavily influenced by the direct and indirect involvement of central banks, correlations among asset classes are less reliable, weakening the effectiveness of risk...