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There
is an Ideal investment for each market stage and cycle
and there
is an Ideal investment for each investor. Setting that ideal
is all about assessing the tolerance for risk. Where the returns are
commensurate with the risk, tolerance will find its own level on a sliding
scale which will be different for each investor. In parsing out this
sliding scale, we have developed a portfolio management technique that
identifies discrete patterns and scenarios for each type of investment
based on the specific market stage and conditions. This approach is
based on the Infonomics concepts whereby each piece of information required
for a decision is weighed based on whether is is known to the decision
maker, and if known the quality of the actions taken by the use of this
information. Each investment in the portfolio (or potential investment)
is evaluated to build out a topology of the market against the ideal
investment. This approach provides the decision maker with a number
of patterns and scenarios which provides a high degree of reliability
in predicting success or failure.
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