Redefining Behavioral Finance
Despite the countless articles, research studies, and books published on behavioral finance and its impact on financial advice, very few writings provide actionable insights for how to incorporate these concepts into client relationships or the fundamentals of investing. We identified three reasons why in a previous post.
Most of the content published on this topic explains what behavioral finance is, its significance, and the definitions of various biases that plague investors.
As a result, advisors are left with interesting anecdotes or pop-psychology musings when what is really needed is a multi-step solution of coaching, investment selection, and repeated communication to fully address the ingrained instincts that drive “irrational” investor behavior.
2020 is over.
The turbulent events of 2020 – mainly, the arrival of the coronavirus pandemic that abruptly shut down and redefined the world as we knew it – proved that market-moving events can be unexpected and incredibly damaging. In March, when people across the U.S. were forced to retreat to the safety of their own homes, markets collapsed and investors feared the worst.
Yet while 2020 is in the rearview mirror, many of its challenges remain. The stock market has clearly recovered, however, the national economy is still in disarray and the pandemic continues to rage on.
Here’s a look back at the year that was and the lessons we learned along the way:
January 13, 2021
If there’s anything we’ve learned from 2020, it’s that market risk can strike quickly and dramatically. An effective risk-managed strategy can help a diversified investment portfolio better adapt to quick turns in the market. But how can you stay invested while mitigating risk of the unknowns?
In the upcoming webcast,
Reduce Market Downside Risk with a New Approach to Hedge Equity Portfolios, Marc Odo, Client Portfolio Manager, Swan Global Investments; and Jamie Atkinson, Managing Director, Head of Global Sales, Swan Global Investments, will outline how incorporating hedged equity into a portfolio may help your clients mitigate tail risk while seeking upside market participation.
December 23, 2020
Swan Global Investments, a specialized asset management firm with a 20-year track record in hedged equity solutions, announced on Wednesday the launch of the Swan Hedged Equity Exchange-Traded Fund (HEGD). HEGD is the first ETF launched by Swan Global Investments.
HEGD aims to address long-term investors’ need for capital appreciation while hedging against the risks and volatility associated with today’s often volatile markets. This differentiated solution combines the benefits of low-cost, passive investing with an actively managed hedging strategy.
The fund is anchored by Swan’s proprietary Defined Risk Strategy (DRS), which is a time-tested, disciplined approach that utilizes hedged equity and options-based strategies seeking to help investors grow their capital while also seeking to mitigate market risk. HEGD pairs the benefits of passive investing in equity index ETFs with actively managed options strategies, potentially resulting in a less volati