Styles of investment strategy
- Styles of investment strategy
Within the context of financial investment, especially investment management, different approaches to selecting investment have differentiated themselves into disting styles. This article aims to explain the key differences and theories between styles of investment strategy.
Fundamentals
Investing in real assets is generally accepted as one of the best ways to achieve real investment growth over time.
However, the methods used to make your investment are manifold and often split people into opposing camps. Assuming that it is accepted that a number of different holdings are selected to spread risk then the logical progression is to ask by what method do you select your holdings? At this point when considering Bonds or shares or any other easily definable market then two camps are formed: those who believe that it is impossible to know which stocks will do well and those who believe it is possible to predict which stocks will perform better than others. If you believe it is possible to select the stock which will do well you will actively manage your investment buying and selling upon whichever principles you decide. If you believe it is not possible to predict performance you will purchase your stock upon whichever criteria you feel is appropriate and hold those investments accordingly. Ok?
See also
*Active management vs. Passive management
*Absolute return
*Arbitrage
*Behavioral finance
*Day trading
*Fundamental Analysis
*Growth Investing
*Index Investing
*Investor style
*Mechanical Investing
*Modern portfolio theory
*Momentum investing
*Style investing
*Technical analysis
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