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The following posts are related to investment theory. Scroll down to see more articles.

How to take a financial punch

Like a heavyweight title fight, investment plans have a beginning, a middle, and an end. Do your clients’ plans have the dynamic risk-managed strategies and true diversification needed to take the financial punch that markets will inevitably deliver?...

The risks of bond ‘buy and hold’

Employing “true” diversification and a dynamic, actively managed portfolio approach may help advisors and their clients successfully navigate a lower-return market environment. As investors, many of us have traditionally been taught that bonds and other...

Low volatility—high returns?

What offers a better opportunity for investment returns: low-volatility or high-volatility markets? It doesn’t seem possible that low-volatility markets might deliver better returns than the converse of more alpha being delivered in volatile markets. It...

Short-term market outlook downgraded to neutral

Editor’s note: Tony Dwyer, U.S. portfolio strategist for Canaccord Genuity, and his colleagues author a widely respected monthly overview of market conditions, technical factors, and future market outlook called the “Strategy Picture Book.” The...

Risky business

How can advisors build a more meaningful investor behavioral profile? The long-lasting effects of the Great Recession It is hardly news that many investors remain permanently scarred by the credit crisis of 2007 to 2009. Many research studies since have...

The case for managed futures in active strategies

Why managed futures—an often misunderstood tactical tool—can play an important role in portfolio construction, either as a stand-alone strategy or as a key strategic element. During my three decades of experience in using managed futures in active...

Mutt vs. purebred: How should you invest?

Can lessons learned from our canine friends provide a better understanding of the characteristics of effective portfolio diversification? My wife and I have always been dog people. We’ve never owned cats, although we love to play with those of friends...

Lowering risk through active high-yield strategies

Is it possible to conquer the “low risk/good returns” challenge with active strategies? High-yield bonds may offer an attractive risk-managed opportunity. When I joined the financial-services industry in 1994, I tried to determine what it was that my...