Dacris MarketRisk FAQ
What is MarketRisk and Risk-Centric Investing?
MarketRisk is a Windows software application that can be used for risk-centric investing. Risk-centric investing is an investing technique that focuses on keeping risk constant and limited throughout your investing journey.
Risk is defined as the maximum one-year potential decline in your portfolio's value, throughout your portfolio's history. Risk often occurs due to overvaluation, i.e. when an asset price is way above its historical average. Risk is reduced when an asset is undervalued, i.e. its price is way below its historical average. In a way, risk-centric investing is similar to value investing, in that it seeks to maximize investment into undervalued assets.
Depending on how quickly you grow your risk tolerance, you can use MarketRisk for growth investing, blend, or income investing. For example, if your risk tolerance only grows by the inflation rate, you are doing income investing. In income investing, most of your portfolio's gains are realized immediately and turned into income. If your risk tolerance grows by a large amount, say 8% in real terms per year, you are doing growth investing. In growth investing, most of your portfolio's gains are reinvested and grown over time, not realized immediately. There are advantages and disadvantages to every investing technique. The beauty of risk-centric investing is that you know how much you are risking, so in theory your money is safer over time.
What are the assets it supports?
MarketRisk supports 7 investable assets presently:
bond, Dow, S&P 500, gold, silver, platinum, and palladium.
What does it recommend?
MarketRisk calculates the valuation risk in each asset in your portfolio, and recommends a position size for the asset in US $.
What is the best performance it can achieve?
A return of 1960X from 1970 to 2020, or an annualized rate of return of 16.37%.
Combination: Dow, gold, palladium.
Note: Past performance is no guarantee of future results.
How do we calculate risk?
The average risk is determined by the average one-year decline in the asset price over its history. E.g. 0.05 means a 5% decline. Using the average risk and the ratio of money supply to asset price, we can determine the present risk in holding that asset. The formula is not given here due to its properietary nature. Order the product to get the full formula.
How do I order?
At present, you must send us a purchase order to obtain your copy. Please email us your order.
Price: $449 CAD