A Personal Investment Strategy

Abstract

Being a financial professional in the U.S. is not easy. The government spent billions bailing out Wall Street, the sub-prime mortgage crisis and its effects are still lingering, the economy is in trouble and now the "Big Three" auto manufacturers might fold without government assistance. People are not sure what to do with their money because nothing seems like a safe bet. I worked in finance over the last two summers, and I had the privilege of seeing investment professionals handle this situation for their clients. They used many of the strategies they had used in the past, even in this extremely dynamic and uncertain financial period. Sometimes their strategies worked, sometimes they did not. Underlying their performance was their view of the market and its efficiency. Of the countless people who manage money in America every day, every one of them holds their own personal views on how the market works and what the most efficient way of making money is. Most of the investment professionals currently working the market believe that it is indeed efficient. Because the market is efficient one must manage risk and invest accordingly. Unfortunately, I do not agree with everything that you find in most text books and what I saw every day while working in finance. Sometimes you have to question the basic tenets of your field and find some strategies that seem unconventional, but are based on what you believe is right in finance and in life. Investing people's money means taking responsibility for their livelihood and their future. That is a responsibility that cannot be taken lightly. Based on my work experience, I will try to find a way to blend classical investment strategy with new ideas and come up with a personal, logical approach to investing.