What is a aggressive investment?
An aggressive investment strategy is a high-risk, high-reward approach to investing. Such a kind of strategy is appropriate for younger investors or those with higher risk tolerance. The focus of aggressive investing is capital appreciation instead of capital preservation or generating regular cash flows.
An aggressive stock is a higher-risk investment that can potentially produce higher returns than more conservative stocks, but also has equal potential for bigger losses. Examples of aggressive stocks would include junior mining stocks, smaller technology stocks, and penny stocks.
| Category | Active-Based Aggressive Portfolio | Benchmark |
|---|---|---|
| Year to date | 6.43% | 6.14% |
| 1 year | 18.93% | 19.06% |
| 3 years | 6.27% | 5.86% |
| 5 years | 9.75% | 9.57% |
An aggressive portfolio takes on great risks in search of great returns. A defensive portfolio focuses on consumer staples that are impervious to downturns. An income portfolio concentrates on shareholder distributions. The speculative portfolio is not for the faint-hearted.
An aggressive investor commonly has a higher risk tolerance and is willing to risk more money for the possibility of better, yet unknown, returns. A conservative investor commonly has a lower risk tolerance and seeks investments with guaranteed returns.
- WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
- Lululemon Athletica Inc. (NASDAQ:LULU)
- Apollo Global Management, Inc. (NYSE:APO)
- KKR & Co. Inc. (NYSE:KKR)
- Sea Limited (NYSE:SE)
- PDD Holdings Inc. (NASDAQ:PDD)
- Fiserv, Inc. (NYSE:FI)
- Small-Cap Stocks. Small-cap stocks provide the potential of very high capital appreciation. ...
- Emerging Markets Investing. Emerging markets are growing economies primarily located in Asia and parts of Eastern Europe. ...
- High-Yield Bonds. ...
- Options Trading. ...
- Private Investments.
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
General ROI: A positive ROI is generally considered good, with a normal ROI of 5-7% often seen as a reasonable expectation. However, a strong general ROI is something greater than 10%. Return on Stocks: On average, a ROI of 7% after inflation is often considered good, based on the historical returns of the market.
For example, Portfolio A which has an asset allocation of 75% equities, 15% fixed income, and 10% commodities would be considered quite aggressive, since 85% of the portfolio is weighted to equities and commodities.
Should I invest in an aggressive portfolio?
If you need a lot of money for retirement or want to live an opulent lifestyle, you should invest more aggressively. If your needs are lower, you can afford to be less aggressive. Ability to save. If you have a strong ability to save money, then you can afford to take less risk and still meet your financial goals.
An aggressive portfolio may suit investors who feel they can handle a few bear markets in exchange for the possibility of overall higher returns. Or, they may appeal to those who feel comfortable holding onto their investments.
Financial professionals usually don't recommend aggressive investing for anything but a small portion of a nest egg. And regardless of an investor's age, their risk tolerance will determine if they become an aggressive investor.
Typically a conservative portfolio is composed of safer investments, such as cash and bonds, rather than stocks, which are considered riskier since companies and industries can fall in and out of favor.
The Portfolio invests in a combination of Underlying Funds, which are actively managed funds or passively managed funds (index funds) that invest in U.S. stocks, international stocks, U.S. bonds and other fixed-income investments using asset allocation strategies designed for investors saving for retirement.
| Stock | 2024 return through March 31 |
|---|---|
| SoundHound AI Inc. (SOUN) | 177.8% |
| Vera Therapeutics Inc. (VERA) | 180.4% |
| Avidity Biosciences Inc. (RNA) | 182% |
| Arcutis Biotherapeutics Inc. (ARQT) | 206.8% |
| Company (Ticker) | Forward P/E Ratio |
|---|---|
| Alphabet, Inc. (GOOG, GOOGL) | 22.1 |
| Citigroup, Inc. (C) | 8.4 |
| Fidelity National Information Services, Inc. (FIS) | 15.3 |
| Intuitive Surgical, Inc. (ISRG) | 60.9 |
| Company | Analyst Recommendation |
|---|---|
| Alexandria Real Estate Equities Inc. | 1.15 |
| Microsoft Corporation | 1.21 |
| Amazon.com Inc. | 1.23 |
| Lamb Weston Holdings Inc | 1.25 |
- Treasury Inflation-Protected Securities (TIPS) ...
- Fixed Annuities. ...
- High-Yield Savings Accounts. ...
- Certificates of Deposit (CDs) Risk level: Very low. ...
- Money Market Mutual Funds. Risk level: Low. ...
- Investment-Grade Corporate Bonds. Risk level: Moderate. ...
- Preferred Stocks. Risk Level: Moderate. ...
- Dividend Aristocrats. Risk level: Moderate.
What Are High-Risk Investments? High-risk investments include currency trading, REITs, and initial public offerings (IPOs).
How can a 70 year old invest $100 K?
- Invest in stocks and stock funds.
- Consider indexed annuities.
- Leverage T-bills, bonds and savings accounts.
- Take advantage of 401(k) and IRA catch-up provisions.
- Extend your retirement age.
- Stocks.
- Real Estate.
- Private Credit.
- Junk Bonds.
- Index Funds.
- Buying a Business.
- High-End Art or Other Collectables.
If you're 70, you'd look at sticking to 40% stocks. Of course, there's wiggle room with this formula, and it's really just a way to get started. And for many older investors, a 50-50 split of stocks and bonds is what's preferred throughout retirement, and that's fine, too.
A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.
$100 a month invested from age 25 to 65 is $1,176,000. You do NOT have to retire broke.
