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You should consider Actively Manage approach,
or active asset allocation, if you enjoy watching your portfolio
on a regular basis and taking a more active approach to managing
your money. 401k-Investment-Advice.com provides market and
fund analysis and other measurement tools, so you can adjust
your portfolio in a prudent manner as market conditions change.
Risk Avoidance,
not Risk Taking
Sometimes the goal of active management is to add return by
concentrating the portfolio in funds or sectors that are doing
well, and avoiding those that are doing poorly. But most often,
an active strategy is used by investors who want to measure
market risk, to avoid some of the uncomfortable downturns
that come with a buy-and-hold approach.
While it is not possible to "beat" the
market by predicting ups and downs, the market analysis tools
in 401k-Investment-Advice.com will allow you to monitor risk
conditions so you can keep an appropriate balance on safety
and return. This approach may be particularly appealing if
you are near the end of your career and getting close to retirement,
or simply want to reduce the volatility (ups and downs) of
your investments.
The Right Funds
at The Right Time
There are several tools for active investors.
- Actively
Manage Recommendations, which provides a recommended
level of equity exposure based on the current market conditions;
and Fund Rankings, which measures fund performance and risk
in a variety of different ways to help you determine the
best funds for your preferences.
In Research Tools, we provide the rationale
behind these recommendations, including
- Market Environment,
which measures the overall stock market risk levels at any
given time;
- Current
Conditions, which provides more detailed information
on the current outlook for the stock market;
These tools will allow you to determine
just how much of your portfolio should be in the market at
any given time, and which funds they should choose when they
are invested. The combination of these tools will keep you
in "the right funds at the right time".
If you want more information about why
your should consider a more active approach to managing your
money, see "Winning
by Not Losing."
Other Investment
Approaches:
You should consider the Buy
and Hold Approach section of this website if you want
to invest properly, but generally like to "leave it alone."
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