What does Portfolio Forecast do?
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The
ValuEngine Portfolio Forecast will help you maximize returns in your portfolio
by showing you the best allocation of capital across the stocks in your
list. Many people can pick good stocks but then they ignore the all important
matter of how much of a given amount of capital to invest in each one.
For example, if you have five stocks in your portfolio and invest 20%
of your capital in each one, you'll get one result in a given period of
time. If, however, you vary your allocation of capital to, say, 40% in
one stock, 20% each in two others, 15% in another, and 5% in the last
stock, your result will be very different. You tell Portfolio Forecast what
you want to achieve in terms of future returns, and Portfolio Forecast will
then allocate your capital across your portfolio to give you the best
chance of success.
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Do I have to use ValuEngine.com strategies to use the PortfolioForecast?
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No. The Portfolio Forecast
will allocate capital across whatever list of stocks you may choose for
your portfolio and work to maximize your returns with acceptable risk.
In PortfolioForecast, you may choose the strategy that best suits your
tolerance for risk, i.e. "aggressive", "moderate" or "conservative". Portfolio
Forecast will then suggest portfolios of stocks that suit the investment
style you chose. Or, you may select stocks you like and make up your own
list. No matter which method you choose, Portfolio Forecast will evaluate
each stock in your list in terms of your objective and then tell you how
many shares of each stock to buy to maximize your chances of reaching
your goal while maintaining risk at an acceptable level.
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Does Portfolio Forecast rely on the Stock Valuation Model?
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No.
The VE Stock Valuation Model determines current value and current under
or overvaluation. The Portfolio Forecast uses its own mathematical and
econometric models to allocate capital and intelligently forecast probable
risk/return scenarios within your chosen timeframe.
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Is Portfolio Forecast only useful to value investors?
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No.
No matter what your stock picking style or ultimate investment goal may
be, you'll be able to use Portfolio Forecast to your advantage.
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What is the process by which Portfolio Forecast reaches
its conclusions?
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Just
as a chess-playing computer will consider several thousand moves before
selecting the best one, Portfolio Forecast will run thousands of possible
outcomes given the data available for the stocks in your list, and then
run tens of thousands of possible capital allocations to select the scenario
that best matches your investment objective.
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Can ValuEngine's Portfolio Forecast help to maximize
my potential gains and minimize my potential loss?
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Yes.
If you are an aggressive investor, you can ask Portfolio Forecast to maximize
your chance of gain, by selecting "Aggressive" in the investment objective
box. This choice will lead to a portfolio that has a maximum potential
for gain, but is likely to be highly volatile and risky. Conversely, if
you are risk-averse, you should select "Conservative" in the investment
objective box. This choice will lead to a portfolio that minimizes your
potential for loss. When you select the "Moderate" investment objective,
Portfolio Forecast will suggest a portfolio that seeks to maximize your
potential gain and minimize your loss potential.
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