Investment portfolio management is an involved process, depending on economic and individual investor characteristics. Ron Redfield, CPA, PFS, explains the basics of investment portfolio management.
Full Article - Table of Contents
Investment portfolio management basics may seem to be a matter of opinion, depending on current economic environmental factors as well as individual investor factors.
In this article, I will address these issues of investment portfolio managementfrom the perspective of my own experience in managing investors' portfolios.
Here are some questions that we'll focus on.
To begin, I will describe some basic portfolio management strategies, using my own firm as an example.
Obviously these are not necessarily happy and pleasant items, but they are legitimate portfolio management concerns, which we continually try to monitor. Successful investment portfolio management requires constant monitoring.
In today's economic environment, one question we have been attempting to answer, for example, is "why is consumer spending rocketing, while unemployment remains at rising levels?" We are trying to determine if this is residual from lower interest rates and refinances, or perhaps the tapping of Home Equity via ATM-like ease, or is the data we are being presented being distorted, or is the economy just plain old healthy and strong?
Next, let's examine the role played by individual preference in investment portfolio management. The first characteristic is preference for investment termwhether an individual prefers a long term or a short term horizon for his investment portfolio.
Ronald R. Redfield, CPA, PFS, is available for a free consultation and sample portfolio based on your investment risk tolerance levels. And you're warmly invited to request a complementary copy of Ron's text on investment philosophy.
Please contact Ron by visiting him at Redfield, Blonsky & Co., sending him an email, or calling him at 1 (908) 276-7226. Be sure and read Ron's latest commentary on financial investments, to keep up with market changes.