If I state that you can achieve higher returns while decreasing risk, you might ask me what I’ve been drinking. Fair enough, but I’d be right – regardless of what’s in my cup.
Countless millions have been spent on research trying to “crack the code” to achieving higher returns with less risk. And some of those dollars have been well spent, because this seemingly impossible goal is actually possible.
Academic studies have proven that a few simple strategies are repeatedly effective at increasing returns while decreasing risk.
The answer lies in an investing strategy called “asset allocation.”
You see, many investors primarily own “blue chip” stocks and stocks that are members of a major index, like the S&P 500 Index. These are often relatively safe and reliable investments, which is why they are so widely owned.
But that safety comes at a price. Because they are so widely owned, the return potential of such stocks can be limiting. This limit can even be drawn on a chart, called the “efficient frontier.”
This image from Investopedia.com shows an example of the efficient frontier.
To increase returns, investors with an efficient portfolio need to venture beyond “the frontier.” They need to reach out and find stocks that have a completely different risk vs. reward profile then blue chip stocks.
I like to call these stocks “big winner” opportunities.
Because these stocks have a completely different profile, they tend to have very low correlation with broad market indices, like the S&P 500. One indication of low correlation is a stock with a beta near 0.
And that low correlation is exactly why they can make a big difference; owning just a few “big winners” can change the efficient frontier of your portfolio.
That can lead to bigger returns, with less risk.
The trick is to find these big winners. And I’d like to show you how, TODAY at 2 pm eastern time. That’s when I’ll be hosting a live investing seminar called “The Secret to Finding 100% Winners.”
Along with our Chief Investment Strategist Ian Wyatt, I’ll discuss the powerful investing secret that has underpinned the success of the market’s best-performing stocks. We’ll also be taking your questions during a live question-and-answer session.
And we’ll wrap things up by discussing a stock that has huge potential over the next year, and is showing telltale signs of this “secret” signal.
This stock has a very low correlation with the broad market, evidenced by its beta of just 0.03. You’ll get the details on the stock this afternoon.
It will be a fun event, so I hope you’ll take the time to join me for The Secret to Finding 100% Winners this afternoon.
Click here to reserve your seat right now.
Good Investing,
Tyler Laundon, MBA