Over the years there has been an increase in the number of ways that people use to increase their return on investment and at an unbelievable rate. The stock market has been at the receiving end of most of these backdoor methods of investment. According to Gareth Henry, though these techniques are legal, without expertise and adequate information, these methods can cause huge losses on one’s investment. The following are a number of investment techniques that investors need to understand before they can start investing through them.
Risk Parity. Follow Gareth Henry on medium.com
That’s is a form of investment that relies on the volatility of the asset. It does not rely on the prize of the stock but its volatility for example equities, inflation risk assets and fixed income. The details on the investment are adjustable over the period that it’s on the portfolio. As the volatility of the asset reduces, it’s weight on the portfolio increases.
This is the use of computer programs to monitor the stock market. Though they can not be ascertained fully, there were claims that, through huge investments and expertise, program trading yielded rapid and large profits. The only proof of its effectiveness is the huge number of replications. Gareth Henry points out that capital is drawn to point of excess profit, making program trading a reliable investment platform.
CTAs stands for Commodity training advisors. A CTA is basically a financial adviser whose only focus is on commodity investment. Previously, commodity trading advisors were limited to commodity trading but they have now moved to all and any asset class that can be traded. Gareth Henry indicted that CTAs are for large volume investments that are limited to a short period of time ranging from a few days to a week.
Gareth Henry studied actuarial mathematics in the universe of Edinburgh, Scotland. After graduating in 2000, he started his career in investment when working for Schroders in London. He later joined the Fortress Investment Group where he is the current Global Marketing team Managing Director. In the same position, Gareth Henry oversees the wealth, insurance relations and pension funds of the company.
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