Tag Archives: Assets

Ideas to survive with your investments in political risky times

Investments: bearish against bullish

The current year has been commented several times as a year in which political risks will play a role: Brexit, Trump, elections in France and Germany, amongst others. We usually think in other kind of risks when we speak about investments, but in this case it is possible that we have to consider the political factor.

Anyway, we want to obtain the best returns with the lower risk. How could you move your assets in 2017 with this scenario?

First of all, check yourself. No, we do not speak about your health, but about your financial needs and plans. Do your budget, organise a cash flow, analyse your expenditures and think about your financial goals.

Secondly, analyse quietly your portfolio. Is it correctly diversified? Have you recently checked the evolution and consider a rebalance? It is important to take into account that diversification is not a matter of number of securities or different kind of them (equities, fixed-income…). It has more to do with avoiding correlations and considering factors. What does factor here mean? Think about that you have different kind of securities from UK. If all your investments are connected with this country, you have the Brexit factor and this political issue will condition the returns. That needs a wide view over the reality.

Thirdly, in order to choose the best assets for your portfolio in uncertain times, remember to check some figures, as:

  • Trading volume and liquidity: it is very relevant that the asset has a high trade rate and it is easy to sell, in order to avoid counterparty risks.
  • Volatility: the higher it is, the higher is the risk that you have to deal with deep price changes.
  • Past performance and bootstrapping: it is true that past returns do not guarantee future ones, but an analysis of the past trend combined with a forward testing with a bootstrapping tool can be helpful to select better securities for your portfolio.
  • Correlation with its benchmark: this is quite important, even more if the market is risky.

Finally, the main rule for investors in uncertain times (as we are living now) is common sense. Invest only the money left, not the amount to pay your mortgage, think about how regular and safe are your incomes and be reasonable with your goals.

Comparing assets in T-Advisor with our tools

When an investor is looking for interesting assets for his or her portfolio, he or she usually looks into reports to find objective figures: performance, volatility, risk… This task is necessary to take a decision, as everyone has to analyze deeply where to invest the money. But other way to decide an investment is the comparison.

Think about that: you have heard that any sector is living a momentum and you begin to read reports of some companies of this sector. You would like to have a tool to see at a glance the evolution of the performance, instead of building charts by yourself: the T-Advisor tool to compare is your solution.

These are the steps: select the assets and include them in your watchlist. Just click on the star to put on your list. Then choose all the assets that you want to compare. Once you have chosen the assets to compare, click on the button “Comparison”. Watchlist in T-Advisor Let’s look an example with British banks. These are the results: Charts with the comparation in T-Advisor This chart shows the evolution of the returns of the selected assets for different timeframes: Comparation of risk and returns in T-Advisor This other chart compares the position of each asset in the relationship performance-risk.

Both views provide valuable information, as it helps obtain a global view for your interests. You have also more information if you scroll down: Comparative data in T-Advisor You can also use the tool to compare the assets in your portfolio. Select your portfolio and click on the button “Watchlist”. Choose the assets to compare and click on the button “Compare”.

You will obtain the same charts as above. For instance, let’s look the Germany portfolio in T-Advisor: List of assets in a portfolio in T-Advisor Comparative chart in T-Advisor T-Advisor has developed its tools to be a useful help for investors. We are aware that information is important, but in a world with such volume of figures and data, information has to be organized so that everyone can understand it to take their own investment decisions. That is why our developments are focused in collecting relevant data to provide them in understandable and easy ways for our users.

Create a portfolio: organizing my investments

Imagine this situation: you are an investor, you have different assets which have different performances and evolutions in the markets. Think about you have dozens of assets: ETF, stocks, mutual funds, bonds, maybe alternatives… And you cannot find a way to organise and control all of them. Well, the answer is: you have to create a portfolio.

First of all, you have to think about a strategy. The main steps are:

  • Define your goals. Answer yourself: when will I need the money? Consider a strategy for a short-term or a long-term taking into account the volatility and the Value at Risk.
  • Consider your risk aversion. An investment is always risky. If you choose very volatile assets, you may get high returns… or losses.
  • Consider the asset correlation. Uncorrelated assets help reduce losses.
  • Think also about how often you will control your investments: every week, every month, every three months. It should be related with your goals. Consider changing your asset allocation and rebalancing your portfolio.

My portfolio in T-Advisor

T-Advisor provides you a tool to create your own portfolio. The steps to do that are very easy: after defining your investor profile (depending your risk aversion, from very conservative to aggressive), just follow the steps in this video tutorial.

Then you will find a great deal of information to analyze your investments, as performance, risk and diversification. You can also review the investment movements that you have done, buying and selling assets.

My portfolio charts and data in T-Advisor

But what are the main advantages of creating an investment portfolio?

  • You can allocate different kinds of assets to protect you against volatility. A portfolio helps you structure your investments in order to diversify and reap benefits.
  • It helps you plan your finances. Think about that you are saving money for different milestones in your life: a house, the studies of your children, your retirement. You set a portfolio with a certain investor profile to get certain returns in order to achieve your performance goals.
  • You can rely on a passive investment style. Once you create a portfolio, you do not need to change your assets as a day-trader, but just rebalance them every certain period of time, if necessary.

T-Advisor is ready to cover your investor needs. Our tools report you about the main figures and data from stocks, ETF and funds from many markets around the world, so that you can choose the best for your interests and design the suitable portfolio for you.

I look for investment alternatives, but how?

An investor has always an active attitude, because he or she is always taking care of the invested money. Sometimes it is necessary to change some assets from the portfolio: they are not performing as expected or they are losing compared with the initial position. Looking for investment alternatives is hard to do, as investors need a reliable source with many figures and analytics to take the best decisions.

T-Advisor offers some different ways to find the best alternatives for your portfolio. The first one is available in every report for every asset. You can download for every position a “T-Report” with the whole data… and some investment alternatives at the end, if you are not really convinced of it.

Investment alternatives in T-Advisor way 1

The software chooses for every asset a range of alternatives depending the market and the sector and organises them ranked by the strength trend, from the more bullish to the bearish ones.

The second way is the tool “Investment ideas”, which is updated every week and selects under quantitative criteria the best options of a list of 30 developed and emerging markets around the world.

Investment alternatives T-Advisor way 2

In this case, you obtain an alert for an entry price and a stop loss for every asset in the list. You can also download the report with the whole figures.

The third way is the tool “My T-Advisor”, from which we have already written in this blog. This tool provides some alerts with investment alternatives to the assets of you portfolio. The selection is made automatically by the software from quantitative criteria applied to your portfolio.

Investment alternatives T-Advisor way 3

Taking right investment decisions is hard, but it is harder if you do not have available tools that provide you the best reports and information of several alternatives. Our developers were aware of this point and that is why the software was conceived to provide many ways so that an individual can find the best asset that fits his or her goals.

ETF flows follow the US hesitations

ETF flows: World map with asset share in areas

ETF industry changes the strength of their inflows following US hesitations and sighs. The QE tapering or not, the debt ceiling, the continuous uncertainty in the American economic policy conditioned last six months for ETF investors.

The effects are clear, because as our chart shows, 70% of assets market share are on Americans hands. BlackRock report on flows last October reveals that the industry counted $24.3 bn since October, 17th, because traders were waiting for a solution in Washington between Rep’s and Dem’s.

Between January and October and compared with the same period of 2012, ETF flows on equities increased in all world areas but emerging markets, where the trend is beginning to change. After a strong start in 2013, there was a shift in the line, stronger in summer. Investors are now attracted by low valuations.

US equity ETF focused on large-cap and mid-cap, with an important contribution of technology and consumer non-cyclicals. Moreover, assets are near $1 trillion, helped by double digits growths and the current records in the S&P500.

In Europe, equity products pushed up after the stagnation in the first half of the year. Flows on Europe reached $7.9 bn in October, a new record after four consecutive months with increases. The better economic outlook and the attractive valuations moved the investors to the Old Continent, rounding 30% in assets growth. In October, this figure surpassed $400 bn. A figure to take into account: Germany accounted almost $3 bn outflows.

Fixed income and money markets have been performing the worst results, with heavy outflows. Also gold summed a hard outflow in October, more than $2 bn.

In any case, US still drive the ETF markets. Not only because 70% assets are in this country, but because current risks, as a not clear Fed monetary policy (with several contradictory statements of its members) or the next debt ceiling negotiations till January, are on the view of ETF managers to decide where to put their money to obtain higher yields.