Category: Asymmetric Investment Returns
Asymmetric Investment Returns is a risk and reward profile with more upside profit than downside risk or loss.
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Absolute Return as an Investment Strategy
In “Absolute Return: The Basic Definition”, I explained an absolute return is the return that an asset achieves over a certain period of time. To me, absolute return is also an investment objective. In “Absolute Return… Read More
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Absolute Return as an Investment Objective
In Absolute Return: The Basic Definition, I explained an absolute return is the return that an asset achieves over a certain period of time. To me, absolute return is also an investment objective. Absolute Return as… Read More
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Diversification Alone is No Longer Sufficient to Temper Risk…
That was the lesson you learned the last time stocks became overvalued and the stock market entered into a bear market. In a Kiplinger article by Fred W. Frailey interviewed Mohamed El-Erian, the PIMCO’s boss,… Read More
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Sectors Showing Some Divergence…
So far, U.S. sector directional price trends are showing some divergence in 2015. Rather than all things rising, such divergence may give hints to new return drivers unfolding as well as opportunity for directional trend… Read More
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This is When MPT and VaR Get Asset Allocation and Risk Measurement Wrong
I was talking to an investment analyst at an investment advisory firm about my ASYMMETRY® Global Tactical and he asked me what the standard deviation was for the portfolio. I thought I would share with… Read More
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Asymmetric Alpha? Completely Different Measures and Objectives
I was talking to an investment advisor about ASYMMETRY® Global Tactical and the objective of asymmetric returns when he mentioned “asymmetric alpha”. I explained the two words don’t go together. Asymmetric is an imbalance, or… Read More
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Tony Robbins on Asymmetrical Risk Reward
Just last week I posted my article Asymmetrical Risk Definition and Symmetry: Do you Really Want Balance? about asymmetric risk reward and how we want imbalance between profit and loss, not balance. That is, we want… Read More
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How is the market doing? Global Deflation
How are the markets doing this year? Well, it depends on what market you mean. So far 2014 has had only a few gains in world markets: coffee, cattle, cocoa, pork bellies, 30 year treasury… Read More
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Asymmetric Risks of Momentum Strategies
Asymmetric Risks of Momentum Strategies is another attempt to explain the excess returns of momentum using the Capital Asset Pricing Model. The paper discusses a theory of risk asymmetry in momentum risk/reward, but not how… Read More