About Us
At Insightful Ideas, Inc., we have been helping people use technology to make their businesses more profitable for more than 16 years. While we have helped people improve their bottom line through reducing costs or increasing revenues, our current focus is on Active Asset Allocation, which is a refinement on the investment research and financial modeling we have been doing since 1996. Some of our Asset Allocation Models are brought to you through our partnership with FiduciaryVest, LLC.To read more about how we partner with FiduciaryVest, LLC to use @Risk for Asset Allocation Modeling with institutional investment clients, check out our Case Study on the Palisade Web Site.
While operating in small businesses since 1992, we have developed some expertise in marketing. In addition to promoting our investment portfolio consulting services, we will continue to use this web site to share our insights on marketing your small business, with a focus on using a web site to help you achieve financial success.
Over the years, we have built systems to track and report on the performance of Investment Managers and Mutual Funds for Institutional Investors. From there we developed systems for Investment Manager and Mutual Fund Searches that are used to create a recommended lists for Institutional and High Net Worth Investors. With all of this experience being used for the big players in the financial markets, we decided to make the benefits of this experience available to all investors willing to take advantage of it. That's where the Insightful Investing Newsletter got started.
Little did we know when we started running financial simulation models back in 1996 that in less than 10 years the financial markets would provide us with investment return extremes that regular spreadsheet models never considered. The key to these models was the use of investment asset class return probability distributions. Since the long-term expected return of equities is near 10% and the standard deviation is near +/- 16%, one would expect that 96% of the time returns should fall between -22% and + 42%. While the S&P 500 came close to the top of that extreme in 1997, it also managed to dip slightly below the low end in 2002. Technology Mutual Fund returns managed to fall outside of both extremes.
The goal of these simulation models is to seek the asset allocation which produced the highest total return with the lowest likelihood of producing a negative return by simulating uncertainty about the future. Although this analysis is used to show how corporations would be better off having some of their spare cash invested in the stock market and a broad mix of bonds rather than all of it invested in money market funds and short-term bonds, there were lessons we learned that can be applied to the individual investor. Our investigation showed us what would happen to an investment portfolio over a 5 year period in the 1 in 50 chance that negative investment returns during part of that time period were worse than even the “Worst Case Scenario” of a typical analysis. What we found was an asset allocation properly balanced between stocks, bonds, and additional assets would produce better returns and significantly reduce the overall risk of a portfolio versus a the more conservative approach.
At the same time that this work was being done, we started to investigate ways to reduce risk with through the use of options. There are many ways to use options to accomplish your financial goals. For some people, options investing is a low risk way to invest in a stock, Exchange Traded Fund (ETF), index, futures contract, or hedge a long term position. For others, trading options provides a low risk way to take advantage of the short term fluctuations in stock and commodity futures markets. Our initial venture into this area was a web site on Stock Option Trading. Most recently we created the OptionsVest web site which is dedicated to educating investors on how to use low risk options trading for short-term and long-term profits, as well as options investing in order to protect your investment portfolio. Check out our Options Investing Blog to learn more about trading options. You are welcome to visit our web sites to see were we can make a contribution to your financial success.
860 Johnson Ferry Road
Suite 140, #146
Atlanta, GA 30342
Contact: Joe DiNunno
Phone: 404-840-6010
