by KenFaulkenberry | Jan 19, 2014 | Risk
Value investing is about purchasing investment assets at prices that put the odds of above average returns heavily in your favor. Excepting an investment that is going to go bust, almost any investment can be profitable if purchased at a low enough price.
The key to successful value investing is buying assets when the perceived risk is greater than the real risk. It’s equally important to avoid assets when the perceived risk is less that the real risk.
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by KenFaulkenberry | Mar 3, 2013 | Risk
Understanding the types of investment risk allows an investor to manage risk and optimize outcomes. Let’s look at the different types of investment risk and how a portfolio manager can use the tools available to improve their probability of positive outcomes instead of negative outcomes.
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by KenFaulkenberry | Sep 30, 2012 | Risk
The TED Spread is the difference between the 3 month T-bill rate and the 3 month London Inter Bank Offered Rate (LIBOR). It is important because it is an indicator of perceived economic risk, monetary liquidity, and perceived credit risk of the global financial banking system.
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by KenFaulkenberry | Dec 4, 2011 | Portfolio Management
Inverse ETFs provide a low cost vehicle for a portfolio manager to take the market risk partially or wholly out of an entire portfolio or a specific segment of a portfolio.
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