Risk Aware Investing

Many standard measures of risk across our industry assume that risk follows a normal bell curve. Our research suggests, however, that this isn’t always true.

The traditional method of building a portfolio determines a risk tolerance level for a client and makes occasional trades to keep the risk in line with this desired level. For example, a client may decide to invest 60 percent in a higher risk asset class, like stocks. However, the risk of investing in stocks changes over time. Stocks are more risky during a recession, or a negative environment. Likewise, stocks carry less risk as an economy emerges out of a recession, or enters a positive environment. The standard portfolio won’t assess the changing investment environment. We do.

Price movements

Trend
Momentum
Participation
Relative strength
Money flows
Thrust

Investor sentiment

Survey/polls
Investor actions
Absolute valuations
Relative valuations
Volatility
Overbought/oversold

Economic environment

Interest rates
Yield curves
Credit spreads
Liquidity
Economic activity
Inflation

Simplify your financial life today, contact CMR Financial Advisors to get started.

CMR Financial Advisors, Inc.

1003 Bishop Street, Suite 2620
Honolulu, Hawaii 96813
808-537-2912
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Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory Services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and CMR Financial Advisors, Inc. are not affiliated. This communication is strictly intended for individuals residing in the states of AZ, CA, CO, CT, FL, HI, MA, MT, NV, OR, VA, and WA. No offers may be made or accepted from any resident outside the specific states referenced.

Cambridge’s Form CRS (Customer Relationship Summary)

The information being provided is strictly as a courtesy. When you link to any of these websites provided herein, CMR Financial Advisors, Inc. makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, sites, information, and programs made available through this site.

Cambridge does not offer tax or legal advice. Investing involves risk. Depending on the different types of investments there may be varying degrees of risk. Clients and prospective clients should be prepared to bear investment loss including loss of original principal.

CMR Financial Advisor, Inc.