Modern Portfolio Theory

Modern Portfolio Theory was developed in the 1950’s with the belief that portfolio returns could be maximized for a given amount of investment risk by combining assets in a particular manner.
The theory is that, using relationships between risk and return such as alpha and beta, and defining risk as the standard deviation of return, an “efficient frontier” for investing can be identified and exploited for maximum gain at a given amount of risk.

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ETF Portfolios Guide – Advantages, Disadvantages, Newsletter

Arbor Investment Planner recognizes the need for an ETF Portfolios Guide. The goal is to assist the apprentice investors in their portfolio management decisions. The explosion in the number of ETFs means there is a large variety of ETFs to choose from today.

ETFs are the perfect investment vehicle for the apprentice investor, investors with small portfolios, or investors with large portfolios who want significant diversification in a targeted geographical area, sector, or industry. Used wisely they can be a valuable tool to lower risk and/or improve portfolio returns.

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Buy and Hold Works….Until It Doesn’t

Buy and Hold is considered by many to be the holy grail of investing. Its current popularity has become a cult-like strategy that draws criticism to its critics and disdain towards those who dare speak out against the beloved investing strategy.

So buy and hold works….until it doesn’t. People will quote all kinds of statistics “proving” that buy and hold works. Its the trend of our day. This is nothing new. Bull markets make buy and hold look good. Bear markets make buy and hold look bad.

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