Season Investments announces the release of their latest Insight unpacking the foundation and exploring the merits of the new and popular low volatility equity ETFs.
Online PR News – 04-July-2012 – Colorado Springs, CO – "Investors have few spare tires left. Think of the image of a car on a bumpy road to an uncertain destination that has already used up its spare tire. The cash reserves of people have been eaten up by the recent market volatility." - Mohamed El-Erian
In 1952 Harry Markowitz pioneered a portfolio management theory that set in motion a broad shift in portfolio construction methodology and even won him a Nobel Prize. Today his framework is referred to as “Modern Portfolio Theory” (MPT). The main premise of MPT is that because investors are rational, markets always perfectly reflect all available information. This belief in efficient markets led him to conclude that the only way to generate returns in excess of the market was to take on more risk.
Fast forward to today and there are a slew of investors that are questioning the merits of the market’s efficiency given the violent ups and downs of the past decade. This has opened the door for a variety of alternative approaches, one of which is being marketed as low volatility investing...
Season Investments is a Colorado investment management firm that was created to provide an accessible alternative to the classic buy-and-hold approach pushed by so many large financial institutions. The most sophisticated investors in the world utilize dynamic risk management and hedging techniques to protect their capital as they grow it. Likewise, Season Investment's unique approach emphasizes proactive downside protection as a way to compound greater returns over full market cycles.