Oak Brook, IL (PressExposure) June 25, 2009 -- In a bear market like the one weâre currently in, what type of investment strategies provide the best results?
Noted financial advisor Timothy Frisby weighs in on the issue in his financial services blog at [http://www.wealthcareconsultants.net] According to Frisby, an Absolute Return Money Management Platform is still producing strong results for his clients, despite the weakening of the US Dollar.
Treasury Secretary Timothy Geither has claimed publicly in a May 21, 2009 financial times article, that a strong US dollar remains a priority. However, as the US Dollar devalues against many other world currencies, Frisby notes on his blog, the effect on the market and economy will make matters worse.
âThe Federal Reserve's policy of 'quantitative easing' guarantees a flight to hard assets,â according to Frisby. âThe Chinese will not be buyers of US Bonds in the future.â
And, in spite of the Fedâs efforts, its worst nightmare, deflation, is persisting, as the Chicago Report recently confirmed. The report, which was released on May 29, 2009, the report, confirmed that prices continue to fall even though the fed is frantically printing more money, Frisby points out.
So in this current bear market, Frisby is steering his clients towards Absolute Return Management. In fact, since January 2006 through April 2009, the Absolute Return Money Management Platforms Frisby is recommending to his clients, have averaged between 10% and 18% compound return net of fees and expenses. More important, these returns were achieved with 50% less volatility than a "buy and hold" portfolio during the same time period.