The AAII Philadelphia Chapter presents...
"Risk Premiums, Valuations, Mean Reversion & ETF Selection"
Discussed by:
Michael Paciotti, CFA
Chief Investment Officer, Integrated Capital Management, Inc.
It?s astounding that the financial news media doesn?t do stories about a very sensible investment strategy, based upon two well-known phenomena. The first is that risky investments, on average, earn higher rates of return than risk-free assets (their risk premiums). The second is that if something is out of kilter, more likely than not it will eventually get back to normal (reversion to the mean). Michael Paciotti looks for categories of investments (asset classes) whose risk premiums are larger than is justified by how risky they are. He then buys exchange-traded funds (ETFs) that cover them. When reversion to the mean drives those risk premiums back down to normal, he sells at a profit. If you would like to learn how he does it, then come to our meeting!
| Attend This Meeting and Learn... |
 | How valuations affect asset class returns |
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| What mean reversion is, and why it is important in investment decision-making
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| How you can use valuations to select ETFs to buy
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