Investing Education

Discover a wealth of investing information, articles, tips and advice for how to intelligently manage your risk and increase your returns.

SmartStops Featured Articles

In Defense of Market Timing – a study that will shock you!

The general investing public has been told that market timing is a high risk proposition. Most of what has been written about the topic focuses on its failure and the risk investors take when trying to time the market. A typical study focuses only on the negative consequences of missing a few particular up days in the market – calculating the negative financial impact of missing those days and concluding that attempting to time the market is foolish. The biggest fallacy with these studies is

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Accelerate Return-to-Risk Ratios with Higher Betas

A survey conducted by Charles Schwab indicated that 45% of investors would choose an advisor who provides products which protect them against market risks over one that doesn’t. By incorporating intelligently adjusting exits and risk based position sizing into one’s...

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Instead of Modeling Risk, Why Not Control It?

"Risk comes from not knowing what you're doing." Warren Buffett To be more successful in helping investors, the professionals that provide guidance to wealthy investors need to step up and take control of risk rather than sitting around figuring how to estimate risk...

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Nowhere to Run: The Correlation Bubble

SmartStops Comment:: Indeed, Beta and correlation approaches are not enough to manage risk in today's markets. However we have somewhere for you to run - to intelligent self-adjusting risk methodologies that the SmartStops optimization engine offers. Originally...

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Position Sizing: Key to Maximizing Returns

In a time when market volatility and equity preservation is of utmost importance, determining the correct number of shares to buy, or “position sizing”, is key to maximizing returns and minimizing risk. The common investor generally doesn’t spend much time thinking...

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How Can Advisors Build a More Modern Portfolio?

Originally published By Matt Ackermann on May 16, 2012 at OnWallStreet.com   SmartStops comment:   The fear of investing in traditional assets due to volatility can be minimized for an advisor's clients by the use of a SmartStops methodology.  SmartStops was created...

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In Defense of Market Timing – a study that will shock you!

The general investing public has been told that market timing is a high risk proposition. Most of what has been written about the topic focuses on its failure and the risk investors take when trying to time the market. A typical study focuses only on the negative consequences of missing a few particular up days in the market – calculating the negative financial impact of missing those days and concluding that attempting to time the market is foolish. The biggest fallacy with these studies is

read more

A Managed Approach For Investment Portfolio Risk

Is your investment portfolio more like a roller coaster with no exit strategy, just going round and round and up and down, arriving right back to where it started? Don't just go along for the ride, use a managed approach to limit downside risk and to capture gains....

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Take The Greek Factor Out Of Your Investment Portfolio

By contributing writer: Rebecca Petcavich February 23, 2012 Although one may think that they’re not invested in the Greek crisis, many portfolios may hold equity positions and ETFs that could be effected by the European debt crisis.  The European Union is the U.S.’s...

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ETFs Turn Exotic – Protect yourself

Source: McGraw-Hill Financial Communications Investments that do not move in tandem with U.S. stocks present opportunities for diversification and potential performance enhancement. Summary Points Exchange-traded funds (ETFs) are a convenient vehicle for accessing a...

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Hedge fund leverage in the industry – how its grown

SmartStops comment:   Who watches out for the little guy? A chart from MIT's Andrew Lo of the growth of assets and hedge fund leverage over the last 20 years. You can see the expanding leverage in the 2001-2005 period.  originally posted at Infectious Greed blog....

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Chicken or Egg? Risk Tolerance as a Driver of Financial Success

SmartStops would like to draw your attention to this article's statement:    Overall, by taking more risk Bill can expect to be significantly better off.    As SmartStops will remind you, you can take on more risk by ensuring there is constant active oversight for...

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Rethinking Modern Portfolio Theory

Are we all doing it wrong — or is the theory in need of updating and repair? I think MPT died 30 years ago," says Jeffrey Saut, chief investment strategist at Raymond James. "If the theory were correct, Warren Buffett, Peter Lynch and Paul Tudor Jones wouldn't have...

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