Risk Management

Found 6 Articles.

Higher Risk Not Equal to Higher Returns

December 9, 2014

We’ve covered this in the past, but there’s new research. A rule of thumb is that you have to take more risk to earn higher returns. It appears now that in stocks at least that’s not the case. In fact, the riskiest stocks, as measured by volatility, earn lower returns than average. One explanation could […]

Understanding Investment Risk

September 9, 2014

Investors hear a lot about risk, but few of them really understand risk and risk management. If you might be in that category, or you simply want to read an excellent discussion of risk, consider this essay by Howard Marks of Oaktree Management. Marks takes on the widely-accepted academic and financial professional view that volatility […]

Higher Investment Returns with Less Risk

October 8, 2012

One of the long-time top-performing funds in our “hedge fund” mutual fund portfolio is FPA Capital. For many years its met the goal of earning stock index-like returns with less risk and volatility. Manager Steve Romick made one of his rare public appearances this morning on CNBC. Romick explained how he does this by being […]

Why Risk Management in Investing is Critical

June 29, 2012

I often encounter people who expect my investment advice should focus on at least one of two things: identifying the investments that will earn the highest returns in the next short-term, and forecasting the returns of different investments, but especially the stock indexes. Instead, I focus on risk management. The returns will take care of […]

Lower Risk = Higher Returns

June 13, 2012

One of our enduring themes at Retirement Watch is that investors need to manage risks and they’ll earn higher return long-term if they take lower risks. The academic world finally is catching up with this thinking, and it’s moving fairly rapidly into the professional investment world. Take a look at this paper from GMO, a […]

Taking Too Much Risk in Retirement

July 6, 2011

Investing in retirement is a relatively new field. We’ve been leaders in developing strategies that differ from the long-time conventional strategies, but people have been slow to follow. Most retirement portfolios are either too conservative or too risky. On the latter side are portfolios that continue the same allocation the owner adapted many years before […]

October 2020:

Congress Comes for your Retirement Money

A devastating new law has just been enacted, with serious consequences for anyone holding an IRA, pension, or 401(k). Fortunately, there are still steps you can take to sidestep Congress, starting with this ONE SIMPLE MOVE.
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