You can reduce volatility by focusing on what you can control. I will show you portfolio risk control strategies to manage volatility that is reducing portfolio returns. Limiting portfolio volatility should be part of every investors risk management plan.
...The Piotroski F-Score Test is a value investment analysis tool to identify stocks of companies with good fundamentals and eliminate stocks of weak companies. Piotroski developed a 9 point F-score ranking system that has produced an incredible performance record of finding quality investments.
...Tactical asset allocation investing is an active strategy which allows portfolio managers to change their target asset allocation according to the valuation of assets. It involves a continual management of risk through frequent portfolio rebalancing to a flexible asset allocation target.
...Professor Robert Shiller of Yale University developed the Shiller PE 10 to more accurately reflect long term trends and smooth volatile components of the standard P/E ratio. PE 10 is also called the cyclically-adjusted price-to-earnings (CAPE) ratio. Shiller was able to show that the P/E 10 at any given time was correlated to what market returns would be over the next 20 years.
...Use stock valuation tools such as the PEG Ratio to evaluate and compare companies. The ratio provides insight into the trade off between the price of the stock, the earnings per share, and company’s expected growth rate!
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As founder of the Arbor Investment Planner my passion is to educate and empower the individual investors to manage their own investment portfolio.
The Arbor Investment Planner is a value investment portfolio management guide for those individual investors who choose to manage their own money. I focus on ideas and concepts important to the self directed investor; but put special emphasis on risk management, value investing strategies, and proper asset allocation and diversification.
- Ken Faulkenberry
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