We are happy to announce that we intend to be making a formal application for an SR&ED grant owing to some of the technology involved in our proprietary risk management platform. As it has been delivering solid results for our customers for several years, and having developed novel methods for quantifying risk in stocks and other securities, we feel it is likely to succeed.
Lenski Advisors began operating in Canada in July, 2002. It has been an exciting journey and we wish to thank all of our customers and vendors for making this one of our most successful years ever.
People frequently talk about having a diversified portfolio, however what they often think that means is simply having a lot of different stocks. Having a large number of different stocks will insulate your portfolio from some sorts of narrowly focused risks. Larger systemic risk reduction requires careful analysis including correlation analysis of investment sectors.
If you have a portfolio that consists of only oil and gas stocks, then any shifts in the oil and gas market will affect your portfolio as a whole even though you may have many different individual holdings. Correlation analysis lets you track the historical returns of market sectors against each other to see if they frequently move in lockstep, or have no connection. In some cases you may even discover negative correlation, meaning when one sector rises the other falls.
A sophisticated portfolio will usually have ten or more sectors, including different investment vehicles such as stocks, bonds, or more exotic holdings like currency swaps. Through careful work one can find the “efficient frontier” which allows for maximizing return while simultaneously minimizing risk. For more information, read about Modern Portfolio Theory.
It can often be difficult for a small business to stay afloat when they are in debt. It can often be a real challenge for a small business to build up their credit rating and keep from going too deeply into debt. There are various strategies that are available to help people in the small business world to manage their finances and debt.
One great debt helper for Canadian businesses is that the government has set up funding to assist small business with debt relief. There’s no harm in asking the government for assistance if it is available. There are also other ways in which small business can get relief from their debt. They can get a loan to consolidate their debts, which can be very helpful to them.
A small business might also consider getting a fresh loan in order to get some other loans taken care of. Changes in loan terms can really help out a small business that is coping with a lot of debts. Another thing that a good small business should be doing is making sure they get paid when their pay is due from their customers. This is imperative for them to do in order to keep their business afloat.