| 1) |
Make
an honest assessment of personal risk-tolerance. |
| |
a) |
Click here
for an Investment Profile Questionnaire. |
| 2) |
Establish an asset allocation strategy
coinciding with your individual risk tolerance. |
| |
a) |
AAS strongly recommends that our Private
Investors employ diversification into their investment portfolios. |
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b) |
Please visit the Asset
Allocation tool provided by SmartMoney.com for assistance. |
| 3) |
Decide upon a “Top-Down”
or “Bottom-Up” investment approach. |
| |
a) |
Top-Down investor’s
start with broad market analysis followed by industry and
sector analysis. They decide to purchase individual stocks
or funds within those sectors and industries that are performing
the best. |
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b) |
Bottom-Up investors focus analysis on
individual stocks or funds initially to then determine which
sectors and industries are performing the best. Once determined,
they usually purchase funds that mimic certain sectors or
indices. |
| 4) |
As a Top-Down Investor...
|
| |
a) |
Begin with the Market
Index Overview to get a feel for what markets, investment
styles or sectors have been doing well over the past twelve
months. |
| |
b) |
Then examine the
Major Markets and Style Box
analysis to determine which indices and styles have the highest
AAS Rating Score and if there are any Buy Recommendations. |
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c) |
The final step would be the specific
stock or fund selection based on the sectors, groups or indices
which meet individual performance standards. |
| 5) |
As a Bottom-Up Investor... |
| |
a) |
Begin by viewing the
AAS Top Ten analysis and determine the AAS
Rating Scores and AAS Buy Recommendations
for the equities included on those pages. |
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b) |
If there is a common sector
or industry outperforming, consider selecting an index or
fund representing it. |
| 6) |
Build a custom diversified portfolio. |
| |
a) |
Private Investors should understand that
different securities provide various returns and investment
risks.
|
| |
b) |
As with any investment decision, please
read and understand the investment prospectus prior to commitment. |
| |
c) |
A portfolio could include a mix of various
ETF’s, mutual funds and stocks. |
| |
d) |
Or perhaps a portfolio of just mutual
funds is adequate. |
| |
e) |
Some will see the advantages of AAS in selecting
various investment contracts available inside variable annuities
offered by American Skandia, Nationwide Insurance, Security
Benefit, Jefferson National and others. |
| 7) |
Investment portfolio maintenance. |
| |
a) |
Once the portfolio is established, private
investors should keep an eye on the AAS Rating
Score, the AAS Buy Recommendation
and the Sell Limit Watch. |
| |
b) |
Pay special attention to any securities that
have a steadily declining AAS Rating Score. |
| |
c) |
If a security currently owned no longer has
an AAS Buy Recommendation but the
Last CP is greater than the Sell
Limit Watch, this is considered a recommendation to “hold”
the security. |
| |
d) |
Remember that AAS does not provide sell recommendations
to its subscribers. |
| |
|
| |
i) |
Subscribers have discretion
over when to sell based on individual risk tolerances
and investment objectives. |
| |
ii) |
It is highly recommended
that subscribers sell their holding if the Last
CP is below the Sell Limit Watch. |
|
| |
e) |
It is recommended that subscribers periodically
use the Asset
Allocation tool provided by SmartMoney.com
to re-balance their portfolio. |
| |
f) |
For further information, please read How
to Understand the AAS Investment Research Report. |
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