SmartStops.net’s New Historical Performance Calculator Reveals The Shortcomings of Buy and Hold

Author: SmartStops
Dateline: Palo Alto, California (PALO ALTO, Calif.)  | Thu, 09 Sep 2010

freeNewsArticles Story Summary: “PALO ALTO, Calif. — SmartStops announced today the launch of the performance comparison calculator. The calculator analyzes the historical performance of equities comparing a buy and hold approach to one following a risk mitigation strategy. In addition to total return, risk exposure and opportunity costs are also quantified and the results presented in simple visual diagrams.”



A R T I C L E:

SmartStops announced today the launch of the performance comparison calculator. The calculator analyzes the historical performance of equities comparing a buy and hold approach to one following a risk mitigation strategy. In addition to total return, risk exposure and opportunity costs are also quantified and the results presented in simple visual diagrams. When the entire risk/reward equation is taken into account, the under performance of buy and hold becomes more apparent.

Factors analyzed and returned by the calculator include:
* Total Return
* Lowest Investment Value Over the Period
* Opportunity Cost
* Return Per Day In The Market And Exposed To Risk.

Investors typically make buying decisions based on the risk/reward analysis of a particular equity. Unfortunately, the risk exposure does not remain constant over time,” explains Chuck LeBeau, Director of Analytics. “Our goal at SmartStops is to make investors of all levels more aware of changes in their risk exposure, enabling them to make timely and informed decisions that protect assets and improve returns.”

Many buy and hold investors are asking themselves today, what if I had sidestepped the Toyota recall incident (TM) or the BP oil rig disaster (BP)? How much would my investment performance have improved? The SmartStops Risk Monitoring service detected abnormal trading patterns and issued risk alerts in the early stages of both of these events.

The performance comparison calculator shows the benefit of acting on these alerts and taking protective action to sidestep these periods of above normal risk. SmartStop risk alerts are published on over 4,000 equities and ETFs and the performance comparison calculator is accessible at http://smartstops.net/PublicPages/SmartStopsOnDemand.aspx .

About SmartStops:

SmartStops.net is dedicated to helping investors of all levels be more aware of changes in their risk exposure enabling timely decisions that protect assets, improve returns and provide peace of mind. SmartStops.net portfolio monitoring and risk alert services start at just $9.95 per month.

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Story Title: SmartStops.net's New Historical Performance Calculator Reveals The Shortcomings of Buy and Hold
• REFERENCE KEYWORDS/TERMS: Intelligent Risk Management, Palo Alto, California, portfolio monitoring and risk alert services, Banking and Finance, Finance, , PALO ALTO, Calif..

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