Oftentimes, an investor may be especially averse to risk on an emotional level, but their need to take more risk in order to reach investment goals may be lost on them. Advisors need a way to reconcile this concept to their clients. How do
From risk systems for advisors to algorithms used by robo-advisors, quant risk management has gone mainstream. These systems have gone from being housed on supercomputers at large institutions to cloud-based systems with calculations that cost almost nothing. However, as cheap risk modeling revolutionizes the way
The previous blog posts (From Client to CEO: Does Portfolio Crash Testing Really Work? & The Proof Is In The Pudding: How Portfolio Crash Testing Worked for Me.) in this series delved into the DNA of PCT and my personal experience utilizing the Riskostat application
Risk in itself is neither good nor bad, but it is extremely important that you understand what risk and how much of it you are taking. As advisors are adopting wealth management technology, they seem to be focused on the risk tolerance aspect of risk
We built Portfolio Crash Testing to help you get and keep clients. All advisors use PCT to visually demonstrate the risk profile, adjust loss level to the one that client is comfortable with and to show spending projections. However, each advisor also has their own
As advisors are adopting wealth management technology, they seem to be focused on the risk tolerance aspect of risk system implementation. But building a portfolio by subordinating everything else to the risk tolerance is detrimental. Portfolio creation in this case becomes similar to silly car
How can an Advisor differentiate from competition in this volatile market? Study after study shows that the first thing that prospects and clients care about is capital preservation. Investors are worried about risk!
Last quarter was the first time since 2008 that both stock and bond
When discussing investment plans with clients, it always makes perfect sense for an advisor to talk about 'why' before 'how much'. The 'why' for the investor is always the goal. This is why they invest the money and certainly why they tolerate any risk in
This article by RiXtrema President appeared on ThinkAdvisor.com
I like to use car shopping as an analogy to the investing process. Let’s imagine what it would it be like to buy a car with a view only to targeting our tolerance for risk and forgetting why
What does Riskalyze Risk Number really measure? Disclosure of calculation and methodology essential for meaningful discussion.
Riskalyze has responded to our criticism of the math behind their interest rate stress test. Unfortunately, the response does not address a single point of substance and seems rather personal. Our