Stress Testing Is Key To Risk Management
“The essence of investment management is the management of risks……not the management of returns” –Ben Graham The current investing environment may be classified as “increasing
Income Investing In A Rising Rate Environment
Interest rates are like gravity in determining the overall stock and bond market valuations. A high interest rate increases the gravitational pull-on valuation. Conversely a
The Risk Of High Growth Expectations
Growth Expectations Often Overly Optimistic The analysis of historical growth rates is best illustrated by the McKinsey book “Valuation.” McKinsey categorized all companies into 1
Margin Of Safety
The pursuit of investing is to obtain a satisfactory return on principle and a return of principle. But, the future is uncertain and investors must
Continuously Assess Risk: Inflation Risk
INFLATION RISK Inflation is too much money chasing too few things. Inflation results in the decline of purchasing power of a currency over time and