Investment Strategies

Risk Management

Volatility and Sharpe Ratio are inadequate financial measures
Volatility is used as the default risk measure. But do investment decisions based on volatility and the volatility-base Sharpe ratio always lead to plausible results? The answer must be "No". This analysis shows how and when these financial indicators fail.

How to be fully invested in equities with less than 2% volatility
In equity investments, people like to speak of a volatile asset class. Its volatility is often given as around 15-20% per year. What is neglected in this view is an investor's investment horizon. This analysis shows how stocks can also bring volatility down to the level of bonds.

Outperformance

Momentum effect - Do stocks have a memory?
Loved by traders, hated by economists - the momentum strategy. The naive investment strategy of simply choosing those stocks and markets that went well before seems too naive to many professional investors. And yet the momentum effect, or a trend-based strategy, is welcome for traders. In the meantime, also scientifically examined, there are now even some momentum ETFs for private investors to buy.
Who is right now - does the previous performance at least give an indication of future performance, if not a guarantee like every legal notice announces?