An investment process is a strategic approach that helps you to answer the what, when, why, how much to buy or sell at any given point in time. The value of an investment process is its discipline.
Most investors lose money because they do not have an investment process.
When you look for an investment advisor I agree that performance is important. Understanding the investment process of the advisor, however, is crucial. Recognizing the flexibility and adaptability of an investment process is also relevant because the investment environment has a knack for continuous change. It allows to manage risk.
My investment process is based on two main pillars. The first one is geared to understanding what is happening to the economy and how it will affect the price of various asset classes.
The second one is that I follow the markets and try to understand if they agree with my conclusions. But I am not pragmatic. If they rise, I will try to follow prices on their way up. If they decline, I will start selling.
The first pillar gives the discipline. The second one provides the dimension of flexibility.
(This Observations appeared in the 8/26/2002 issue of The Peter Dag Portfolio).
More details in my The Peter Dag Portfolio and my free educational videos on www.peterdag.com.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
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