Portfolio Management Strategies: Rapid Fire

What this video covers

• Why strategic asset allocation targets only change when the client changes, not when the market changes, and how rebalancing differs from tactical market timing
• The active versus passive management distinction, including where each fits with the efficient market hypothesis (EMH) and which typically brings higher fees and turnover
• How growth investing (high price-to-earnings (P/E), high price-to-book (P/B)) contrasts with value investing (low P/E, low P/B, margin of safety) and the patience trap of value investing
• Why diversification substantially reduces unsystematic (company-specific) risk but never eliminates systematic (market) risk, and what defensive sectors actually mean on the exam
• How dollar-cost averaging (DCA) produces a lower average cost than the average price when markets fluctuate, and why it does not guarantee profit
• The four critical numbers: 60-30-10 strategic allocation baseline, plus or minus 5% threshold rebalancing trigger, 50% Regulation T initial margin, and 25% maintenance margin
• The protective put, covered call, and collar strategies: which establishes a downside floor, which caps upside for premium income, and which does both