Risk Management, Trading & Portfolio Strategies

Investors say most significant challenge is “accepting risk to obtain good yields”

At SmartStops, our analytics engine can empower you to effectively manage your risk.

At SmartStops, our analytics engine can empower you to effectively manage your risk.

On March 20, AdvisorOne, a leading online resource that publishes investment news and market data, issued a story on a new survey from Legg Mason, a family of independent asset management firms, that indicates a majority of investors – 74 percent – say it's a good time to be invested in equities.

Further, 52 percent of respondents added that they are now more inclined to use equities to generate investment income, with 25 percent indicating that they plan to increase their allocation in these holdings over the next year. 

With more investors saying that they aren't experiencing the returns they had hoped for on their equities, Matthew Schiffman, the managing director at Legg Mason Global Asset Management, gave some advice to investors reading the report's release. 

"Income-oriented investors need to consider strategies that are focused on outcomes," he said in a statement. "Start by establishing a realistic rate of return based on long-term goals or the need to satisfy liabilities with income."

The report stated that the most significant challenge investors faced regarding income investing was their need to "accept risk to obtain good yields." This was top concern of respondents, topping 15 other challenges that were evaluated by the survey. 

This release underscores the fact that investors who are concerned about their exposure to potential losses should explore risk management tools that allow them to better adapt to a sometimes volatile market.

At SmartStops, our portfolio protection service is powered by an advanced analytic engine designed to help investors of all levels better manage risk. The SmartStops portfolio protection service monitors your stocks and ETFs each market day, watching for signs of elevated risk. If you receive a risk alert, consider selling, hedging or taking other protective action. It is that easy. Reentry alerts are issued when strength is detected and the risk state returns to normal. The key is to make timely and informed decisions when risk levels change to protect profits, limit losses, improve returns and achieve your goals.

Click here to try the SmartStops service FREE for 14 days.

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