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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Commissionable securities transactions for Pinkerton Wealth Partners d/b/a CMR Financial Advisors (“CMR”) are provided through Premier Client Services (“PCS”), Member of FINRA/SIPC. Investment advisory services for CMR are provided through Pinkerton Wealth Partners (“PWP”), an SEC registered investment advisor. Registration with the SEC does not imply a certain level of skill or expertise. PCS and CMR are not affiliated. Neither PCS nor CMR are affiliated with PWP. Neither PWP nor CMR provides legal or tax advice. For more information on PWP’s advisory services please review the firm’s disclosure documents including our Client Relationship Summary which can be found by clicking on the following link https://adviserinfo.sec.