Active vs. Passive Management in an after-recession market?

The buy and hold approach perhaps isn't always the best investment management style. Understanding the complexities of the global markets and how the wheels turn can help you anticipate events, hedge portfolios against market swings, and more importantly allow you take advantage of new opportunities.

Markets are not static, they shift daily with news coming down from various economic indicators such as inflation reports, unemployment reports, and other macroeconomic variables. Yulian Isakov, Senior Market and Investment Strategist, contends that it is not so important to react to news that comes out every second, but what is important is an ability to filter through reports and react to those that can illuminate trends in our economy. Knowing where we are headed as an economy as a whole is paramount to any daily up or down in a stock ticker. This framework allows Isakov Planning Group Financial Advisors to strategically invest their client's money in a way that is consistent with the overall direction of new opportunities and hedge against positions or strategies that become obsolete as a result of this new direction.

Recent recessionary events have taught us that sitting on the sidelines can mean a great risk to our wealth. In the aftermath, our economy is ripe with opportunities, and the investment management style of choice is changing from passive to active management. Your Financial Advisor can help you spot these opportunities and take advantage of their potential for growth as part of an overall strategy that you and your Financial Advisor create to meet your short- and long-term goals.

At any point in time, there are many opportunities in the market and many events lurking to hurt your portfolio. A keen eye to anticipate these events and set the proper hedging strategies in place as well as another eye to look for opportunities will allow clients to pro-actively tweak their portfolios to various market conditions.

These research reports provide general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment or any options, futures or derivatives related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that price or value of such securities and investments may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Diversification does not guarantee against loss in declining markets.

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© 2011 Isakov Group, Inc. All rights reserved. "Isakov Group, Inc." and "IG" refer to the network of member firms of Isakov Group, Inc. including but not limited to Isakov Consulting Group, Isakov Planning Group, Isakov Insurance Agency, and Isakov Group International. Each member firm is a separate legal entity and does not act as agent of Isakov Group, Inc. or any other member firm. Isakov Group, Inc. is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm's professional judgment or bind another member firm or Isakov Group, Inc. in any way.

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Opinions expressed are subject to change. Past performance is no guarantee of future results.

Isakov Group offers a broad range of brokerage, investment advisory (including financial planning) and other services. There are important differences between brokerage and investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties.

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Any information presented is general in nature and is not intended to provide personal investment advice. The investments or strategies presented do not take into account the investment objectives or financial needs of particular investors. It is important that you consider this information in the context of your personal risk tolerance and investment goals.

Asset allocation, diversification and rebalancing do not assure a profit or protect against loss in declining markets.

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