Risk is alot like rain, and your asset allocation is alot like an umbrella. Your portfolio (you) always seem to get wet on your feet and the bottom part of your legs, right? Thats because the part of your body most exposed to the rain is your “risk assets” such as Equities and Commodities. These are the more volatile assets which though they have the best chance of giving your portfolio a substantial boost are also the most exposed when “the bear comes a-knocking”. The dry, upper part of your body? Thats the Bonds and Cash in your portfolio. Much more protected from the rain and thus less susceptible to market swings.
Risk and the Umbrella
Covert Analytics aims to be your bigger umbrella!
Covert Analytics = less risk
Tags: Asset Allocation, Covert Analytics, dynamic asset allocation