Blog Posts tagged "risk management"

Income Report Card | March 2018

Author: Nathan Rowader
Date: March 15, 2018
Category: Asset Allocation, Financial Planning
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The global stock market declined -4.20% in the month of February, putting an end to the historic run. Overall, global stocks had a maximum drawdown of -9.02% from the January 26th high, but recovered some of that loss through the rest of February. There were few places to hide from the sell-off as European stocks fell 5.88% and Japanese stocks fell -1.51%. However, the impact of currencies was more mixed in February than it has been in past months. The yen declined against the U.S. dollar in February, so local investors realized a loss of -3.71%. European investors, on the other hand, realized a better relative return of -3.69% due to the appreciation of the euro relative the U.S. dollar. U.S. stocks outperformed their foreign counterparts with a loss of -3.69% while small-cap U.S. stocks declined -3.87%. The sell-off took a toll on energy stocks, which were just starting to climb out of their rut in January, declining -10.84% in February, as measured by the S&P 500 Energy Sector.

Managing Risk | Part 3: Using a Dynamic Approach to Asset Allocation

Author: Nathan Rowader
Date: September 19, 2014
Category: Financial Planning
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We began our managing risk series two weeks ago with a discussion of the complicated nature of averages and why using them can be damaging when constructing a portfolio. Last week, we delved into a simple method for forecasting returns for major asset classes. This week, we are going to continue our look into the core inputs of portfolio construction by focusing on volatility.

Managing Risk | Part 2: Look to the Future, Not the Past

Author: Nathan Rowader
Date: September 11, 2014
Category: Financial Planning
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Last week we began a discussion on managing portfolio risk and the dangers of relying on averages. One of the core issues that make averages so ineffective in managing risk is that they rely heavily on the past. Investing is focused squarely on the future, so relying solely on past information ignores much of the useful information available to you right now. So, what sort of current information can you incorporate into the portfolio construction process?

8 Steps to Ascend Your Financial Peak | Part 2

Author: Nathan Rowader
Date: August 25, 2014
Category: Financial Planning
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In Part 1 of this post, we shared the first four of the eight steps needed to ascend your financial peak. Let’s take a look at the final steps you should take to reach your goals in Part 2 of this post.

8 Steps to Ascend Your Financial Peak | Part 1

Author: Nathan Rowader
Date: August 21, 2014
Category: Financial Planning
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In May of 1953, Sir Edmund Hillary and Tenzing Norgay became the first people to reach the summit of Mount Everest. The accomplishment earned Hillary and Norgay worldwide acclaim, something they hadn’t expected.


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