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

Why proactive money management makes sense for clients

When it comes to managing money, focus first on risk management, defending a portfolio from losses. This doesn’t mean being overly conservative—but a great offense without an equally great defense achieves little for clients in the long run. We all have...

Enhancing actively managed strategies

Exploring rules-based enhancements for improving returns when invested in risk assets. The goal of active investment management is compelling. Capturing more of an asset class’s upside than its downside is an investment recipe for success. In a simple...

Are index funds the next market ‘bubble’?

While bear markets are inevitable, will their impact be exacerbated by the growth of passive index funds—and the accompanying “madness of crowds”? One of the fun aspects of having children is re-exposure to some great kid-friendly literature. In a...

Keeping portfolio risk under control

Understanding the tools to better manage portfolio risk throughout different market, volatility, and economic regimes. One major gripe of mine is that some portfolio strategists who consider themselves to be risk managers are effectively just risk...

6 misconceptions about alternative investments

Alternative strategies provide a valuable tool to help investors manage risk in their investment portfolios, but this growing investment category is often misunderstood. The investment category of alternative investments is perhaps one of the most...

Explaining the (mis)behavior of markets

Does fractal mathematics offer a better way to understand market risk? The traditional test of understanding how something works is to take it apart and then rebuild it. If the clock still keeps time afterward, there is a good likelihood that the...

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?...