RISK ASSESSMENT
Portfolio risk is one of the most essential challenges for any investor. More ambitious portfolios can generate greater rewards, creating more wealth in a single year than cautious portfolios can provide over several years of investing. But they can also lose most or all of those gains in an quckly if the market turns volatile.
To combat market risk, at Olivia Wealth Management, we combine a “Core” strategy with a rules based momentum capture strategy. The result is an adaptive risk management strategy that uniquely combines fundamental valuation analysis with human behavioral analysis (technical analysis) to aid in downside protection.
We call this the Core+Dynamic Rotation Strategy.
Did you know?
It takes an 11% gain to recover a 10% loss. - Not a problem.
It takes a 25% gain to recover a 20% loss. - Harder.
It takes a 43% gain to recover a 30% loss. - Problem.
It takes a 67% gain to recover a 40% loss. - Big problem.
It takes a 100% gain to recover a 50% loss. - Devastating.
It takes a 300% gain to recover a 75% loss. - Catastrophic.