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Returns

The Math of Gains and Losses

  Here’s an interesting part of investing that most investors get wrong. In fact, if most investors understood this they probably would fire their broker. It has to do with how much it takes in percentage terms for a portfolio to recoup losses after a market correction. So let’s look at this.  If you claim to be a conservative investor, and can handle a 10% loss, then I would agree ...
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Relative VS. Absolute Return Investing

Relative return strategies measure performance relative to the movement of an unmanaged index of securities,  the S&P 500, the Russell 2000, etc... In the world of relative returns, you “succeed” if you meet or beat your benchmark index; you “fail” if you trail your benchmark index. The consequences of failure – i.e., being fired – are quite drastic. To avoid that fate, a relative return mana...
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The Case For Absolute Return Investing…

The case for absolute return investing is rooted in the following: ▪ People’s decisions to buy and sell move stock and bond prices. People might buy or sell in response to external events; however, it is an individual’s decision to buy/sell, and not the actual event, that contributes to the price of a security. ▪ We cannot know what will happen in the future; we cannot know the ...
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