We have been in a bear market since March 2000.
Global shares led by the US are likely at or close to entering a new secular bull market according to Shane Oliver, Head of Investment Strategy & Chief Economist at AMP.
Recently we've enhanced and upgraded our portfolio advice to incorporate the latest financial engineering techniques, and build on our impressive record of advising on client portfolios via a risk management framework.
The dollarDEX method uses ideas from constant proportion portfolio insurance (CPPI), a technique that helps with managing downside risk. While CPPI has pros and cons, careful tuning of CPPI provides investors with reasonable upside and some protection against extreme market conditions. We make use of "certainty equivalent surfaces" to help formulate a portfolio strategy. On behalf of the client we effectively navigate along these surfaces to add protection against a crash without imposing unacceptably lower returns in calmer markets.
Extensive financial simulations of our new model using Monte Carlo techniques show our approach is robust under a wide variety of potential market conditions including crisis scenarios. Moreover our approach will be attractive to investors of different risk appetites, including the type of investor that fits the "prospect theory" of Daniel Kahneman and Amos Tversky (in a nutshell, investors who hate losses disproportionately much more than they like gains of the same amount).
All in all, our upgraded advice service provides richer features, more convenience and better risk management. A free trial is available at the link below.
Page last updated 23 Jul 2012