The American Research House offer a great option to hedge your stock portfolio as well as boost your returns.
September 22, 2021
It’s easy to make money when stocks go up; a rising market is the dream for all wealth managers. On The Portfolio Platform we have some fantastic stock traders who will continuously outperform the market, but what do you do when stocks start to fall? Will your IFA go short? I can tell you that they most definitely won’t.
This is where TPP stands apart from your average investment portfolio. Our traders will go short if they feel it’s the right thing to do, or flat if the economic climate is a little uncertain. It’s essential to have this option in your portfolio. Long only exposure might produce a constant, albeit minimal, return over many many years, because historically, stocks increase in value. The FTSE has increased on average about 7% per year since its inception, but is that what you want? Or do you want more? At the very least you want your capital protected when things go wrong like they did last March.
The American Research House offer a great option to hedge your stock portfolio as well as boost your returns. They will be long 75% of the time, but when the market looks a little inflated, they will short it as they did yesterday. Once again, they called it right and protected client capital. Nobody gets it right all the time, but with an average profit factor of 1.6 they aim to perform regardless of market direction, and offer protection against a falling market.
Make sure you have a diversified portfolio. Please do get in touch if you wish to speak to one of our team about the strategies on offer.
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“TPP might just be about to revolutionise investment for the retail market.”
- London Stock Exchange 2020