Risk Management, Trading & Portfolio Strategies

Chief investment strategist says it’s riskier to invest in “safe” equities

With SmartStops, investors can confidently pursue “riskier” investments while effectively managing their risk.

In a recent article for the Leader Post, an online news outlet that services Regina, Saskatchewan, the newspaper profiled Erik Ristuben, a chief investment strategist for Russell Investments, a firm that oversees more than $150 billion in assets for clients. 

Speaking to the source, Ristuben discussed the tough position many individual investors find themselves in today, left with the choice of low-to-negative returns in cash and fixed income or the uncertainty of so called riskier equity investments. He went on to detail what he sees as effective solutions to these financial issues.

Ristuben believes that it is riskier for investors to keep their money in "safe" investments, like savings accounts or near-cash investments, rather than "risk-investments like stocks." And in order to diversify their holdings appropriately, Ristuben advocates that investors pursue a multi-asset investment strategy in which the risk is spread out globally in stocks or ETFs. 

"The multi-asset solution is based on the understanding that you have to assume risk you're not entirely comfortable with," he told the report. "But once you make that decision [to assume more risk], then you want to use every possible tool at your disposal to manage that risk."

However, even within a multi-asset approach, you're still at the whims of a sometimes volatile market. As such, you have to manage the risk within any asset base, and at SmartStops, we can help you do that with our risk management tools for stocks and ETFs.

We provide a dedicated risk management solution specially geared to the needs of today's investors. Whether you're looking to take an aggressive or conservative approach with your equities, our risk alerts help you stay informed so you can make timely decisions that further your financial goals. 

With our portfolio monitoring, your portfolio, along with current and historic market factors, is consistently tracked to determine equity risk states and optimum protective selling points. At the end of each market day, you'll receive an email with these updated SmartStops, so when an equity is showing signs of elevated risk, you'll be able to take action and adapt your exit strategy to pursue more favorable risk/reward when needed.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s