Beyond Mere Market Timing: Maximizing Trading Profits Through Careful Market Analysis

On the surface, market timing seems no less risky than all other strategies of trading and investing. However, unless done carefully on a regular basis with the best data available, attempting to actually predict the direction of the market is a hit or miss.

Traders and investors who attempt to time markets often use metrics such as technical indicators, market data, and economic conditions to predict logically the direction the market will take over time. Traders often swear by market timing; skilled traders can maximize profits and minimize losses through careful prior analysis based on short-term predictions, making regular incremental profits on a daily basis.

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However, short-term traders have the advantage of more time dedicated to understanding many other complicating variables, something that investors do not always have. In the long term, many predictions will end up failing. Frequently, investors who try to time the market end up buying too soon or selling too early, often underperforming in the long run compared to their more conservative counterparts who decide to weather the ups and downs of the market.

Sound investment strategy does not look exclusively at the immediately foreseeable future but weighs in other factors, including risks. Rather than holding out for the gradual rise and fall of prices, investors should instead focus on using market analysis to identify new industries and companies to invest in. Through careful fundamental analysis, investors can select companies with good prospects of consistent future performance.

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Besides this, investors should also hedge for potential losses through proper asset allocation and portfolio diversification, choosing not only an assortment of companies but also a varied collection of investment types. Those with higher risk tolerances, if they feel confident, can set aside a portion of their funds to time the markets.

Whitman Asset Management is a global macro tactical asset management firm that provides clients with alternative investment programs that target exceptional risk-adjusted returns. Visit this website for more on the firm.

Learning From The Yale Endowment Model

Among the world’s richest institutions are university endowments, which are monetary or other financial assets donated to universities or colleges and in turn invested through diverse channels. Through investment of the funds, the total value of these assets will yield an inflation-adjusted principal amount.

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Income generated by these investments is used to support university operations, such as faculty compensation, and fund operational expenditures, and further investment ventures.

University endowments typically comply with strict policy allocations. They have to meet the target return requirement to overcome the risks involved in typical investments. As such, these endowments are not just allocated to traditional investments, such as stocks and bonds.

University endowments therefore consider alternative investment options. Some private universities even allot more than 50 percent of their funds in alternative investments.

One of the most emulated university endowment models is Yale’s, which was developed by David Swensen some three decades ago. Notably, the hallowed university’s endowment had returns at 11 per cent and had grown to a value of $25.6 billion as of June 30, 2015.

A look into Yale’s asset allocation illustrates a well-diversified and equity-oriented portfolio. At least 8.5 percent are apportioned each to absolute return, leveraged buyouts, foreign equity, venture capital, real estate, natural resources, and bonds and cash investments.

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Diversification seems to form the base strategy through which the university endowment achieves its goals.

Chicago-based Whitman Asset Management is a global macro tactical asset management firm that utilizes technology, processes, and systems to identify alternative investment opportunities to help clients build portfolios with exceptional risk-managed scalable returns. To learn more about the company, visit its official website.

Investment Ideas In The Windy City

It’s a dream for many people to put up their own business. For residents of Chicago, there are quite a number of businesses with huge potentials. Here are some great ideas for businesses in Chicago, which may very well be good investments.

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Online food delivery: Online food delivery is booming. Startups have been popping up everywhere with products that cater to everyone from health buffs looking to go on a very specific kind of diet to foodies wanting to experience exotic cuisine.

Art gallery/stores: Everywhere people look, there’s bound to be a community of independent artists. Many of these artists are extremely talented and have yet to be given a break. Creating a place that both showcases their art and markets it may very well be a huge hit.

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Functional fitness centers: Not everyone who goes to the gym goes for bodybuilding. Functional fitness training helps people become stronger, not necessarily bigger. It doesn’t take a lot of money to open a functional fitness center since the business owner won’t need to purchase machines that one would normally find in commercial gyms.

Online laundry and dry cleaning: Why would this business click? It saves people the time and effort. It doesn’t need to be a 24-hour operation. Research shows that laundry is often done either at night or during the weekends. An online laundry and dry cleaning company could make life very convenient for people who are just too darn busy.

Charles F. Whitman is the head of Whitman Asset Management, a tactical asset management firm.  For more about the firm and investments, visit this website.

Exploring The Rewards Of Alternative Investments

Alternative investments encompass all asset types that do not fall within the definition of traditional stocks, bonds, or cash assets. These include hedge funds, managed futures, real estate, commodities, derivatives contracts, and a growing number of other types of investments. Alternatives are characterized by their complex nature, limited regulations, and relative lack of liquidity. Moreover, this kind of investment has offered distinct benefits for long-term portfolios of different types of investors.

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The key benefit of investing in alternatives is the low level of correlation with fixed-income and equity markets allowing to cushion market volatility and to reduce systematic market risk factors. Additionally, many types of alternative assets have significant diversification potential. Investing in various areas reduces the volatility of an asset’s price movements allowing for maximum returns and reduction of risks.

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The full range of alternative investment options also presents numerous opportunities to find new exposures that are not accessible with traditional investments. In addition to stocks and bonds, investors can look into infrastructure, real estate projects, and startups to diversify their portfolios. Although this does not guarantee against losses, a well-diverse portfolio is an essential component in achieving long-term financial goals.

The benefits associated with alternative investing are plenty. When managed well, alternative investments offer numerous rewards in terms of profit and financial stability.

Whitman Asset Management is an established tactical asset management firm providing alternative investment programs that target exceptional risk-adjusted returns. Visit this website soon to learn more about the Chicago-based firm and its services.