Some people who are interested in our Investment Guidance Service want to know more about portfolio protection in falling markets. In this post, I’ll look at this in more detail.

Our secret weapon is ISACO’s lead investor. He’s a trend follower and market timer, whose aim is to get in sync with the market’s trend and direction. Rather than swimming against a current, he prefers to swim with it. A full economic cycle lasts about 5 years and consists of a bull market and bear market. A bull market is when the market forms an uptrend and a bear market is when the market forms a downtrend. 

People who like ISACO’s Investment Guidance Service brochure normally ask ‘how’ we’ve helped our clients achieve market beating performance.

We have been successful in helping our clients achieve better ISA performance by offering investment guidance from an investor who has historically ‘beaten’ the stock market. Using a talented investor with a great track record has proved to be ISACO’s secret weapon.

When we help investors plan for the future, we take them through our Investment Appraisal process. This has many similarities to a portfolio analysis, but with the particular needs of ISA and SIPP investors in mind.

This is an important question that I’m often asked. When answering, I usually start by explaining what makes proactive investors different. In essence, they are investors who initiate change rather than just reacting to events.

In my opinion, strong proactive investors can perform better than those who merely react. This is because they aim to ‘time the market’ rather than just responding to it.

When I’m speaking to investors, they sometimes ask about ‘return on invested capital'.

Return on invested capital is an investment measure used to assess a company's efficiency at allocating the capital under its control to profitable investments.

In this way, return on invested capital gives a sense of how well a company is using its money to generate returns. Comparing a company's return on invested capital with its cost of capital reveals whether invested capital is being used effectively.

Value investing remains topical in the current climate, so in this post we’ll look at this strategy in a little more detail and how it contrasts with our approach.

ISACO’s aim is to help ISA and SIPP investors achieve their investment goals faster.  For more information on ISA investing, you may be interested in our free Top 10 Tips for Successful ISA Investing.