Monday, February 14, 2011

A New-Age Investment Philosophy

A New-Age Investment Philosophy | investment

A New-Age Investment Philosophy Potential Return and Volatility

At the most basic level, we're looking for two things out of our investment portfolios: (1) high returns and (2) low volatility.  The goal of any investment strategy is to maximize investment returns while minimizing the fluctuations of the portfolio's overall value.  In an ideal world, our portfolio returns would look something like the chart below:

     

This straight line increase in the value of our portfolio is created by earning a 10% return every year without fail.  This is ideal because we know what the value of our portfolio will be at any point in the future.  So, if I want to have 0,000 available at retirement, I'll now exactly how much I need to invest every year to get to 0,000 at retirement.  Unfortunately, this isn't a reality.  Investments fluctuate in value on a daily, weekly, monthly and annual basi
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DISCLAIMER: INVESTING AND TRADING IS VERY RISKY AND FINANCIAL LOSSES ARE OFTEN THE RESULT.

Investment success is far from a sure thing. This site is solely intended for educational purposes. I am not a registered investment advisor and it is not my intention to provide anyone with investment advice. I am not recommending that any reader of this blog buy, sell, short, or engage in any other investment strategy based upon the content set forth herein. I strongly urge all readers to perform their own due diligence before investing and or trading their funds. I will not be responsible for any readers financial losses.