Investment ideas are general, non-specific views, strategies, or tips on how to invest in the stock market. Many professional and investment managers recommend various stocks according to individual financial circumstances and construct specific investment portfolios based on such investment ideas and strategies that seek to target a certain style of investing. They use investment ideas to guide their clients in what stocks to buy or sell. While some investment ideas are geared towards one type of investment like real estate or stocks, others could be used to target diverse investment styles.
Modern portfolio theory (also known as modern portfolio theory) is an approach to investing that emphasizes the study of asset classes for the purpose of achieving balanced investment plans. This theory postulates that there are various asset classes that could be targeted by investors and that these classes can have varying risk levels. These classes could also be diversified across different types of asset classes. The theory further postulates that these various asset classes could interact with each other in terms of prices, dividends and capital gains.
Since the aim of any investment plan is the attainment of a favorable return on investment, modern portfolio theory postulates that the best way to achieve such a return is to take a comprehensive and long-term view of one’s financial plans. This would mean that financial advisors should recommend investment strategies that would keep funds allocation as fixed as possible and that would work regardless of economic conditions. Moreover, financial advisors should not recommend any one stock or any one asset class over another but instead they should provide advice across the whole spectrum of investment ideas. As such, financial advisors should only recommend investment plans on which they are confident and that they are sure will not lose value in the future.