Time for Active Management
We find ourselves in the early evening of passive investment management. Despite the portfolio drawdowns we saw in 2022, buy and hold portfolio management continues to be the overwhelming choice of investors, their advisers, financial academics, and the Wall Street giants. The idea is now hard-wired into the system and still gaining market share. After all, it has worked for forty-five years...
Status of the KP Trend Model
The performance of the stock market determines 70% – 80% of the performance of your self-directed retirement account.
Success at managing your investments is mostly about aligning your portfolio with the trend of the markets and just a little bit about fund choices or selection of individual investments.
Analyzing Market Trends
At the end of the day, market trends, not investment selections, dominate the performance of an investment portfolio.
Forecasting these trends is a challenging undertaking, but it is critical that an investment manager make the effort. Even a partially-successful approach to managing market risk is likely to significantly impact volatility and portfolio drawdown.
