Planners want to reduce risk as much as possible in the portfolio while still achieving a sufficient return to achieve the client's financial goals -- an even more challenging task in light of current low interest rates on cash and bonds.
Showing posts with label reward. Show all posts
Showing posts with label reward. Show all posts
Friday, September 19, 2014
The Top 10 Retirement Challenges: #3. Balancing Risk & Return
Planners want to reduce risk as much as possible in the portfolio while still achieving a sufficient return to achieve the client's financial goals -- an even more challenging task in light of current low interest rates on cash and bonds.
Thursday, April 22, 2010
Historically Bullish Indicator Flashes A Buy Signal
A rare stock market BUY signal that was generated a couple of weeks ago by a trend-following indicator with an exceptional long-term record.
Prior to the recent buy signal, there had been only 12 since 1967.
And 2 of those 12 prior BUY signals occurred in the last 12 months alone. In other words, between 1967 and March 2009, this indicator gave just 10 BUY signals -- an average of just 1 every 4.3 years.
Since March 2009, though, they have averaged 1 every 4 months or so.
The indicator in question comes from Ned Davis Research, the quantitative research firm. It generates a buy signal whenever the percentage of common stocks trading above their 50-day moving averages rises above 90%.
Mr. Davis refers to such events as a "Breadth Thrust."
The recent BUY signal, according to this indicator, occurred on April 5. The other BUY signals over the last year occurred on May 4 and September 16 of last year.
How has the stock market performed following past BUY signals?
Quite well, according to Mr. Davis's calculations...
Prior to the recent buy signal, there had been only 12 since 1967.
And 2 of those 12 prior BUY signals occurred in the last 12 months alone. In other words, between 1967 and March 2009, this indicator gave just 10 BUY signals -- an average of just 1 every 4.3 years.
Since March 2009, though, they have averaged 1 every 4 months or so.
The indicator in question comes from Ned Davis Research, the quantitative research firm. It generates a buy signal whenever the percentage of common stocks trading above their 50-day moving averages rises above 90%.
Mr. Davis refers to such events as a "Breadth Thrust."
The recent BUY signal, according to this indicator, occurred on April 5. The other BUY signals over the last year occurred on May 4 and September 16 of last year.
How has the stock market performed following past BUY signals?
Quite well, according to Mr. Davis's calculations...
Bottom Line:
If history is any guide, the current climate is a low-risk, high-reward environment.
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