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The author comments on the clients' perception of risk chase in the financial market. He also stresses that clients who are not willing to develop and follow a strict process to guide their investment decisions have little insulation from the emotions that drive the market over the short term. They are often swayed by macro factors that are difficult to predict with any consistency and difficult to translate into investment decisions.

The article focuses on the factors to consider in using hedge funds and private equity. It states that the advantages in using private equity with clients include the high investment minimums that can range from $1 million to $5 million for individual funds. It mentions that the taxation of most of the return from hedge fund strategies is based on ordinary income rates.

The article focuses on the impact on financial advisors of short-term slumps in the investment market. It questions the periods of underperformance among managers with good long-term records. The Vanguard 500 Index Fund and Russell indexes are used in benchmarking mutual funds. The times when the manager's edge disappeared because of inconsistency and lack of discipline should be distinguished. It suggests for managers to be patient when the market environment works against them.

The article reports that fund managers are finding opportunities at the individual stock level despite the poor economic outlook. During an economic crisis, mispricing of stocks can take place, which reportedly presents an opportunity for skilled active managers when the prices are corrected. Data from Empirical Research is also cited which showed opportunities for stock pickers.

The article states that macroeconomic forecasting cannot replace bottom-up fundamentals as the basis for sound investing. It cites factors that can have an impact on the investment environment. It recommends asset class valuations and manager due diligence. It mentions cyclical factors that have an influence on top-down analysis.

The article discusses the process used by investors in managing a client's retirement income portfolio. Investors must be able to recognize the risk patterns in the stock market which will become a basis in deciding when to buy and sell. A disciplined approach to investment is a basic foundation of a decision framework for investors. Return expectations derived from rational analysis should guide and support the investment decisions of investors.

Focuses on the problems encountered by mutual fund companies. Effect of unchecked asset growth on fund returns; Benefits of fund investing; Description of fund companies.

Provides information on how one investment adviser company rebalances its portfolios. Model portfolio of the company; Ways in which it reaches its target percentages; Factors being considered before deciding to rebalance.