Setting proper downside risk expectations during market volatility 

This just in from FinancialPlanning:

The Dow finished the day down by 1,032.95 points, or 4.15% at 23,849.23 — down 2,767 points, or 10.4%. A drop of 10% from its high of 26,616 on Jan. 26 is considered a correction. The S&P 500 tumbled 2.96%, erasing its gains for the year. Ten-year Treasury yields flirted with four-year highs. 

And on Wednesday, Suleman Din wrote an article for FinancialPlanning titled, "Can another digital demand crush be avoided?" Some of the industry's most well-known


Posted in FinancialPlannng, In The News, Joe Elsasser, SmartRisk, portfolio risk, Risk, Market Volatility, Downside Risk

Find out how your practice would fare in the next down market

By, Ron Piccinini, PhD, Director of Product Development

From a risk manager’s perspective, a bank is a derivative on interest rates. Similarly, RIA practices can be viewed as a derivative on stock and bond markets. Here’s a quick way to estimate the sensitivity of your practice to markets.


Posted in Risk, SmartRisk, Ron Piccinini, PhD, RIA, Market Volatility

How do you know a portfolio is diversified?

By Ron Piccinini, PhD

This is inspired by a true story. 

There was this fellow named Edmund. Edmund's high-priced education had taught him the virtues of diversification. His job as a banker paid him a nice sum of cash every month, plus bonus; he had bought a house, and his retirement account was comprised of a diversified mix of domestic and international stocks. On his office wall was hanging this quote from the Merchant of Venice: "My ventures are not in one bottom trusted, nor to one


Posted in Expected Tail Loss, Diversification, SmartRisk, portfolio risk, Asset interaction, asset interaction index, portfolio volatility

Advisor Perspectives Article

New tools to prove you acted as a fiduciary

Bob Veres recently conducted a review of SmartRisk Pro, one of the risk tools Covisum recently acquired through PrairieSmarts.


Posted in Blog, Fiduciary Rule, Risk, SmartRisk, SmartRisk

ThinkAdvisor: black swans, Trump's victory, DOL rule: black swan expert explains


Posted in Blog, Fiduciary Rule, In The News, Industry Advice, Risk, SmartRisk

How should you measure portfolio diversification?

Posted on July 05, 2016

Diversification is achieved when the gains in certain holdings of your portfolio offset the losses of other holdings. It means that you don’t have all (or most) of your eggs in the same basket. Diversification is critical because it reduces the impact of (bad) luck and isolated events on the overall performance of your portfolio. Check out how to quantify portfolio diversification: Are all your eggs in the same basket?


Posted in Blog, Industry Advice, Risk, SmartRisk, White Paper

The world's best value markets - Investors Chronicle

Posted on June 24, 2016

Posted in Blog, Risk, SmartRisk, SmartRisk

How indifferent are you to risk? - Investors Chronicle

Posted on June 03, 2016

Posted in Blog, In The News, Risk, SmartRisk, SmartRisk

Ideal portfolio: asset diversification is cheaper than you might think - Investors Chronical


Posted in Blog, Risk, SmartRisk, SmartRisk

The value of risk management - Investors Chronical


Posted in Blog, Risk, SmartRisk, SmartRisk