Why Stockradar portfolios
I am a quant.
In other words, data, numbers, and verifiable results drive my investment decisions.
Why am I willing to stand by this strategy.
Firstly, based on my personal research and results from14 years of performance, it can produce returns that historically outperform those of common benchmark portfolios and in fact more importantly to my members those returns can be ‘absolute’ regardless of market direction.
The objective FOR my members is to grow wealth year on year coupled with an effective risk management strategy that protects capital.
Secondly, the same research shows it does so with reduced volatility and draw-downs thanks to a strict risk management strategy. One size can fit all!
This leads us to the third reason why I believe in this framework: It addresses a major question facing many investors today — “how do I put it all together?” Investors today have access to more market data and strategic information than at any other time in history. In fact it reaches overload proportions which can lead to frustration and confusion.
So the third reason I’m advocating this framework is because it’s holistic. On one hand, the approach is broad and sturdy, rooted in respected, wealth-building investment principles. On the other hand, it’s strategic and intuitive, able to adapt to all sorts of market conditions. The result is a unified, complementary framework that can relieve investors of the hand wringing and anxiety of “what’s the right strategy right now?”
It’s not the only way, but it certainly is A way.
– If you’re an investor who’s struggled with generating long-term returns that make a real difference in your wealth, I believe this portfolio process can help.
– If you want less anxiety during periods of heightened market volatility and draw-downs, I believe this portfolio process can help.
– If you’re unsure how to balance the simplicity of buy-and-hold with the various benefits of an active portfolio, I think the investing framework I use can help.
If that sounds like the way you are investing, I hope you’ll read on.
I’ve named the two portfolios you’re reading about today, “The Stockradar Conservative Portfolio and the Stockradar Energizer portfolio.”
There are three core tenets of these portfolios:
1) Diversified across sectors,
2) Tilts toward investments exhibiting momentum traits, and
3) Exposure to trend following.
Let me elaborate on those three tenets:
- Degree of diversification across stock market sectors.
- Tilts. A “momentum” tilt means we’re investing more heavily in stocks that are enjoying more upward momentum in market pricing than other stocks. Plus weighing the portfolio towards equal weighting rather than market capitalisation weighting benefits the portfolio over time.
- Add trend following as many investors struggle with buy-and-hold. It’s difficult to do nothing while watching your portfolio drop 10%, 30%, 50% or more. This leads to all sorts of bad behaviour including the most damaging – selling during bear markets and never re-entering again. Think back to any “I can’t take it any more” moments you may have had in 2008 or the tech bubble after 2000. The alternative to buy-and-hold, we use trend following active management.
Some contextual definitions:
Momentum definition: Momentum is the rate of acceleration of a security’s price or volume.
Trend following definition: to take advantage of market trends by observing the current direction and using this to decide whether to buy or sell.
We don’t want to be invested in securities that won’t be rising (stuck in a pit stop). So using this trend filter helps us weed them out of our portfolio. What we have with Stockradar is a well-engineered portfolio whose objective is to provide absolute returns, even in varying market conditions.
How do you prevent emotional decisions from ruining your returns?
Discipline.
Whatever strategy you decide to implement, simply stick with it. Whatever it is that works for you and enables you to sleep well at night — then stick with it! Let the rules of your strategy dictate your actions, not your emotions.
MAKE IT WORK
Any effective and profitable portfolio strategy requires a mastery over emotions that few investors exhibit on a long-term basis. For good reason, of course; it can be hard. Remaining faithful to your strategy when your portfolio is dropping 10%, 15%, or more is incredibly difficult. Similarly, when you hear others are making big returns from the latest market darling and you’re missing out, it’s a challenge to resist joining in. And as so often happens, the moment you join in may prove to be the moment the stock turns down! If all of this is too difficult for you, then consider partnering with a cost-effective provider who will help you stick with your plan.
Let Stockradar by your guide to investment success
