A model portfolio to manage risk

 

 

 

The main objective of portfolio management is managing risk.

 

The above chart shows what I mean. The green line represents a model portfolio I backtested from 2003. The blue line is the actual SPY - the S&P 500 ETF.

 

The difference between the two performance lines is self explanatory. It explains the advantages of managing risk in comparison to a buy-and-hold strategy.

 

The performance of the model portfolio shown above is discussed in each issue of The Peter Dag Portfolio. Of course, it is important to remember that past performance does not guarantee future results.

More details in The Peter Dag Portfolio on www.peterdag.com

George Dagnino, PhD
Editor, The Peter Dag Portfolio

Since 1977

Author, Profiting in Bull and Bear Markets

No. 1 bond timer in the past 12 months. 

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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