Jeremy Louder on Defending Against Stock Market Risks

(Newswire.net — October 19, 2017) Dallas, Texas — Around the world, individuals, corporations, and governments choose investments to create financial assets for later use. With any investment strategy comes risks; investors have the potential to lose all or a portion of the finances they invest, regardless of the type of investment. Jeremy Louder, a financial services professional and Managing Member of Monarch Vision Advisors, LLC, knows that smart investors seek ways of minimizing risks to protect against the loss of their hard-earned money. “Investing in the stock market is never risk-free,” says Jeremy. “There are many strategies available to invest safely and to protect portfolios from unwanted losses.” To learn more about Jeremy’s work in in the financial industry, visit https://www.crunchbase.com/person/jeremy-louder

Of the common portfolio protection strategies, the time-honored leader is diversification. A diversified investment portfolio is one that contains assets from many different areas, such as stocks and bonds, real estate, mutual funds, and treasury bills, to name only a few of the many choices available for investors. Diversification can work, even in market downturn conditions, because financial assets are spread over more than one asset class. An added benefit of diversifying investments is that they tend to outperform more concentrated portfolios. “Preserving capital should be the goal of the long-term investor,” adds Jeremy. “Diversification is so popular because it works over the long haul, regardless of what individual markets are doing.”

A related strategy to diversification is the concept of non-correlating assets. These assets include asset classes like real estate, commodities, and currencies. Investing in these assets in addition to stocks often results in reduced risk and volatility, as non-correlating assets react differently to market conditions than stocks do. The result is a balanced, stable return with fewer highs and lows from more volatile markets. Again, these asset classes spread wealth around, reducing losses that result from failing markets or economic downturns.

Dividends are a commonly-overlooked but valuable way to protect one’s investment portfolio. Investment in stocks that pay dividends is a strategy that often delivers returns outpacing other investment methods. “Dividends often account for part or all of a stock’s total return,” says Jeremy Louder, who has guided clients through smart investment choices for over two decades. “Dividends serve as a cushion in declining markets and are ideal for risk-averse investors.” An added bonus of investing in dividend-paying stocks is that the companies paying the dividends tend to grow earnings substantially faster than those that don’t. Fast growth is related to higher share prices and higher capital gains, which are both good news for the discerning investor. For more information on Jeremy and his financial services experience, visit https://www.houzz.com/pro/jeremylouder23/jeremy-louder-consulting-inc