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Hedging: A Dirty Word or a Useful Strategy?

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by Ken Faulkenberry

Hedging has become somewhat of a dirty word lately.  People correlate it with Hedge Funds and “betting against America”.  In reality, hedging, like many things (i.e. alcohol), can be abused or used incorrectly and cause harm, but when hedging is used correctly it can be a useful tool or a prudent necessity.  A homeowner will usually hedge the chance of a fire destroying his home by purchasing fire insurance.  Hedges can also improve the safety and reduce risk in an investment portfolio.  Hedging is a portfolio diversification strategy to reduce risk by owning something that is correlated inversely to other assets in the investment portfolio.

Owning precious metals investments, including gold and silver mining stocks, are a hedge. The primary purpose of owning these investments is because they do well during times of rising inflation or economic and political turmoil.  These are the times other asset classes like stocks, bonds or real estate may not do well.  Therefore it is prudent to hedge a portfolio by owning some investments related to precious metals. During periods of economic stability most portfolio managers recommend a target of 3-7% of a portfolio in precious metals related investments, but that percentage could be much higher at certain times. It is important to constantly monitor economic and political risks to achieve the optimum asset allocation in precious metals.

A recent popular vehicle for investing, Exchange Traded Funds (ETFs), provides an instrument that moves inversely, or the opposite direction of a stock market index.  Some of these inverse ETFs even move 2 or 3 times as much as the underlying index.  The need for frequent rebalancing makes inverse ETFs dangerous for anyone who doesn’t understand how they work or does not pay close attention to the need for frequent rebalancing. In other words, inverse ETFs require an active asset allocation strategy.

For investors who employ an active asset allocation strategy, the inverse ETF can be a useful tool by allowing an investor to take the market risk partially or wholly out of one’s stock portfolio.  For example, let’s say you own $100,000 of 20 great companies with solid balance sheets and high dividends, but believed strongly the stock market is going to decrease in value. You may not want to sell your stocks so you buy $50,000 of an ETF that moves two times the inverse of the market.  You now have removed all the market risk from your portfolio of stocks.  If the market moves lower, as you believed, you will make money on the ETF to make up for losses in your stocks.  Of course, if you are wrong and the market moves higher, you will lose money on the ETF that will offset the gains in your stocks. The purpose is to continue receiving the dividends and not incur the taxes and commissions selling and buying your 20 stocks.

Hedging is an important and useful diversification strategy to reduce investment risk and improve long term portfolio performance.  It is also a strategy that requires careful application, monitoring, and frequent rebalancing.  Properly used, hedging can reduce investment risk.

About Arbor Investment Planner

The Arbor Investment Planner provides the Arbor Asset Allocation Model Portfolio (AAAMP) which uses hedges to reduce portfolio risk.  Investors use the AAAMP as a guide but stay in control of their assets, and make their own investment decisions.  The AAAMP uses precious metals investments and inverse index ETF’s to maintain asset allocations at levels believed to be optimum for the current investment environment.  Rebalancing is taken into consideration in Trade Alerts sent to subscribers. The AAAMP is updated with every trade or major market move in order to stay disciplined and focused on our asset allocation.  More Information is available at: www.ArborInvestmentPlanner.com.

Written by rrpr

September 8, 2009 at 7:03 pm

DIVERSIFICATION The Critical Element of Portfolio Management

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arbor_logo

By Ken Faulkenberry

Diversification is the single most important element of investment planning. Diversification is a portfolio strategy that reduces risk by combining different investments that are not correlated.  The volatility (risk) of the portfolio is reduced because not all asset groups, industries, or stocks move together.  The goal of diversification is to reduce risk.

Lack of diversification and over diversification are two common mistakes made by investors.  Lack of diversification (putting all your eggs in one basket) is the most dangerous and ruinous mistake possible.  Over diversification can result in a portfolio performing like the market. Many investors have experienced the bad results of over diversification during the current decade.  Most institutional vehicles (i.e. diversified mutual funds, pension funds, etc.) are over diversified and simultaneously lack an asset allocation needed for success in today’s challenging environment.

Proper Diversification can reduce many kinds of risk including company specific risk, poor fund management risk, industry risk, and market risk!

Company specific risk is risk that is specific… [ read more at http://blog.arborinvestmentplanner.com ]

More information available at: www.ArborInvestmentPlanner.com.

Runaas Resources Wins Business of the Year Award

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Houston Area PR Agency Honored by the Spring-Klein Chamber of Commerce

July 25, 2009 – SPRING, TX – Runaas Resources LLC announced today that the independent public relations agency received the Spring-Klein Chamber of Commerce’s (SKCC) Toni Award for 2009 Business of the Year.

Candace Runaas (c) accepts the SKCC Toni Award for Business of the Year 2009 from Toni Richard and Assad Shorrosh.

Candace Runaas (c) accepts the SKCC Toni Award for Business of the Year 2009 from Toni Richard and Assad Shorrosh.

“I am so surprised and honored to receive this…,” said Candace Runaas, president of Runaas Resources, whose company focuses primarily on representing women-owned businesses. She has earned a reputation for her active support of the local business community and her altruistic involvement with non-profit organizations and anti-abuse causes.

The SKCC Toni Award recognizes area businesses that contribute to the economic growth of the Spring-Klein area through active support of the Chamber and its member businesses.

Namesake of the award, Toni Richard, chamber president and co-founder, and Assad Shorrosh, executive board member, presented the award to a tearful Runaas, during the chamber’s 2nd Annual Christmas in July Gala on Friday, July 24, 2009.

The annual fundraiser also serves as a celebration of the one year anniversary of the young chamber.  The first Christmas in July Gala was held only two months after the chamber’s inaugural luncheon in May 2008.  This year’s event featured Commissioner Jerry Eversole as the guest of honor.

“No one could have deserved this award more,” stated Jennifer Grassman, a Runaas Resources client. “I enjoy working with Runaas Resources because they are a creative, strategic and effective PR agency. Candace has such a big heart. She is a fierce advocate for small business owners and community causes. She puts her heart and soul into everything she does and I am honored to say that I work with her.”

About Runaas Resources LLC

Established in 2005, Runaas Resources LLC is a virtual public relations agency located in Spring, Texas.   Candace Runaas, company president, receives much recognition for her innovative PR methods and her involvement in the community.  For more information, please contact Candace Runaas at info@www.runaasresources.com or visit www.runaasresources.com.

The SKCC 2nd Annual Christmas in July Gala Receives Strong Support from Area Representatives and Local Businesses

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Commissioner Eversole encourages businesses during the 2009 SKCC Christmas in July Gala. (Credit: Ava Ray)

Commissioner Eversole encourages businesses during the 2009 SKCC Christmas in July Gala. (Credit: Ava Ray)

Commissioner Jerry Eversole Speaks to Banquet Guests; Local PR agency wins SKCC Toni Award for Business of the Year

July 26, 2009 – SPRING, TX – The Spring-Klein Chamber of Commerce (SKCC) celebrated their 2nd Annual Christmas in July Gala on Friday, July 24, 2009.   Harris County Precinct 4 Commissioner Jerry Eversole spoke as the special guest during the banquet.

“The unique challenge for this chamber is that the area you represent cannot easily be mapped out,” said Commissioner Eversole at the event.  He was referring to the fact that Spring and Klein are unincorporated and extra-territorial jurisdictions of Houston.  “But the businesses of this area need to support this chamber in order for it to continue to grow.”

His comments were spoken with the Commissioner’s candid and outspoken sense of humor to an audience that included a table hosted by Senator Dan Patrick.   Court Koenning, chief of staff for Senator Patrick, and his wife, Dawn, were also at the event.

Event auctioneer, Mark Moore TAL #15019, purchased and donated a Texas Flag donated by Representative Debbie Riddle to be flown over the state capital and a VIP Capitol Tour for the live auction in honor of the day of their choosing.

“We are so appreciative of all the support that we have received from our representatives and the community,” said Toni Richard, president and co-founder of the SKCC.  “The membership continues to grow at a steady pace and our mission to connect the community to create a thriving economy in Spring is really making an impact.”

“We thank all of the businesses that supported us through donations to our auction,” added Elle Carnes, chair of the Christmas in July Committee. “We also give special thanks to the generous sponsors who made this event possible.”  Sponsors of the event included Shorco Inc., Century 21 – Robert Harris, Houston WAHMS (Work-at-Home Moms) and the Tomball-Spring Times.

The event also featured the first annual SKCC Toni Awards ceremony.   Candace Runaas, president of Runaas Resources, tearfully accepted the honor for her company as the 2009 Business of the Year.  The award recognizes businesses that make outstanding service contributions to the chamber and its member businesses.

“I was chamber president of the Humble Chamber of Commerce for 18 years,” shared Eversole, “and I enjoyed ever minute of it.  This chamber can be a very successful one as long as the area businesses and members are willing to support the work that they are doing.”

Commissioner Eversole is currently serving his fifth four-year term as commissioner of Precinct 4, the largest Harris County precinct, encompassing 587.1 square miles with over 904,000 residents.  Spring Texas is located in Harris County Precinct 4.

ABOUT THE SPRING KLEIN CHAMBER OF COMMERCE: Founded in May 2008, the Spring Klein Chamber of Commerce (SKCC) is the business and community support organization dedicated to being the primary resource for area economic development, business expansion and overall quality of life in Spring-Klein. For more information, visit www.springkleinchamber.org or call 281-257-4431.

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Local Celebrity Hosts First Houston Concert to Benefit Victims of Sexual Assault

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FOR IMMEDIATE RELEASE:

Local Celebrity Hosts First Houston Concert to Benefit Victims of Sexual Assault

All net proceeds from the concert to support the nation’s largest anti-sexual assault organization

Spring, TX – July 29, 2008 – Jennifer Grassman, local celebrity and recording artist, will host the city’s first RAINN Over Houston Benefit Concert, to help support the efforts of the Rape, Abuse and Incest National Network (RAINN).  The fundraising concert will take place at the Meridian in Houston in June of 2009.

“It is a tragedy that has tainted the lives of many of us,” says Grassman. “I myself am an abuse survivor.  My best friend is a rape survivor.  We are not alone.”  Every two minutes someone in the United States is sexually assaulted and 60% of those cases go unreported to the police, according to RAINN, the country’s largest anti-sexual assault organization. 

Grassman, a resident of Spring, is hosting the event to raise awareness and educate the public on how to reduce the risks of assault for themselves and their loved ones.  She will perform during the concert, which will feature speakers and other notable Houston personalities, such as Ernie Manouse, show host of PBS’ Inner Views

The financial goal of the event is to raise at least $30,000 with 100% of net proceeds to be donated to RAINN.  Grassman is also dedicating her third album to the organization and contributing a portion of the sale proceeds to their cause.

Tickets will go on sale early next year.  Several sponsorship packages are available for local benefactors to consider.  For more information on the concert or sponsorship opportunities, please contact Jennifer Grassman Music at jennifergrassmanmusic@comcast.net or 281-573-0610. 

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Jennifer Grassman is a singer, composer and recording artist.  Her songs are inspired by her desire to console and reassure listeners who are suffering and to inspire meaningful thought and great expectations. She is currently on tour in Texas.  To learn more, please visit www.myspace.com/JenniferGrassman or www.myspace.com/rainnoverhouston.

The Rape, Abuse and Incest National Network (RAINN) created and operates the National Sexual Assault Hotline (800-656-HOPE) which has helped over 1.2 million people since its inception in 1994.  RAINN recently launched the National Sexual Assault Online Hotline (www.rainn.org), the country’s first secure web-based hotline, which provides a safe, secure and anonymous place for victims to get help online.  RAINN also helps to educate over 130 million college students each year about sexual assault, and leads national efforts to improve services to victims and ensure that rapists are brought to justice. 

 

Celebrity “Judge” Larry Joe to Celebrate Christmas in July with the Spring Klein Chamber of Commerce

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Spring, Texas – July 7, 2008 – The Spring Klein Chamber of Commerce (SKCC) announced today that Larry Joe Doherty, best known for his service on the bench of television’s highly rated courtroom series, Texas Justice, and Democratic candidate for the 10th Congressional District, and his wife, Joanne, will be special guests at the Chamber’s First Annual Christmas in July Banquet and Auction on Friday, July 25, 2008 from 6:00 to 9:00 p.m. 

Doherty will speak on the importance of a cohesive community through strong economic support of local business and will also participate in handing out membership plaques to the Chamber’s new membership.

To be held at the Augusta Pines Savannahs in Spring, Texas, the banquet will have all the ambience and air of Christmas, complete with dinner, dancing, holiday decor and live music.

The live auction will feature valuable sports and music collectibles, and special packages such as a Napa Valley Wine Tour and Nascar Racing at the Texas Motor Speedway in Fort Worth. “The evening promises to be fun and memorable.  This is a great opportunity to get unique Christmas gifts for the person who has everything,” says Elle Carnes, Banquet Chair. 

In its first year the Chamber hopes to increase awareness about the Chamber, boost its current membership by 20%, and raise $5,000 for its startup year.

Tickets are on sale now at $50 for chamber members and $55 for non-members. SKCC is soliciting donations for door prizes and auction items, as well as underwriters and advertisers for the event program.  If you would like to contribute or attend the auction, please visit us online at www.springkleinchamber.org or contact Elle Carnes, Banquet Chair, via email info@springkleinchamber.org or phone at (281) 912-1107.

 

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The Spring Klein Chamber of Commerce (SKCC) is a non-profit organization dedicated to being the primary resource for area economic development, business expansion and overall quality of life in Spring-Klein. For more information, visit www.springkleinchamber.org.

 

Contact:

Candace Runaas

Runaas Resources Public Relations

281-257-4431

www.RunaasResources.com

 

Spring-Klein City Petition

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Written by rrpr

July 3, 2008 at 2:05 pm

Everything But the Brush – HowieDoyle.com

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Sunday, April 13, 2008 – 12:30-2:00 pm

“Everything BUT the Brush” Art Demo by Howie Doyle

A demonstration of diverse, destructive, and devil-may-care abstract art. I will use a putty knife, masonry trowel, toilet brush, loofah sponge, wire brush, and an arsenal of other WMDs for an intense and ouside-the-box art experience on large canvas. Demo at Woodlands Art League booth, Artopoly Section (far north/west side) at Woodlands Waterway Arts Festival (http://www.woodlandsartsfestival.com).

 

 

Written by rrpr

April 10, 2008 at 8:35 pm

Posted in Texas, Woodlands, artist, event

Online social networks are changing the way we meet, work and even write

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 TWO WOMEN…TWO LOCATIONS…TWO COMPLETED NOVEL COLLABORATIONS!

Novelists Meet Online and Merge to Write Scintillating Trilogy!  

HOUSTON, April 1, 2008 – What began as mutual admiration has culminated in a successful literary merger not easily accomplished between two people living in the same zip code…so imagine how amazing it is for these two ladies to pull it off in two different states!  Raquel Eldridge, of Houston, Texas, and Shawnte’ Henderson, of Toledo, Ohio, have collaborated for six years as friends and coauthors, creating several novels, without ever physically meeting each other. WomanEntrepreneur.com observed in a recent article entitled ‘E-Business Trend Spotting for 2008’ that ‘business relationships are becoming increasingly virtual.’  Online business collaborations are a consistently growing trend in our modern technological culture.  Electronic mail, along with social networking websites, such as MySpace and Facebook, and a variety of blog sites, contribute to an emerging cyber-community of business relationships that develop and solidify into thriving partnerships.  Eldridge and Henderson are a good representation of this popular business practice with their latest series of novels.  Neither of the novelists has physically laid eyes on the other in the nearly six years that they’ve been friends and coauthors. “We primarily communicate via standard e-mail and the telephone.  We also maintain separate social networking websites on MySpace, BlackPlanet and other similar sites, acknowledging each other therein, obviously,” says Eldridge.   Conceptualized from the beginning as a 3-part collection, their first installment, Where Friendship Lies, a fictional dramatic work, introduces the reader to complex and well-developed characters that cope with commonplace situations while also confronting the deep emotional issues of loneliness, infidelity and marital trust.  “The novel was very well-received by both male and female readers alike!” says Eldridge.   The two writers recently completed their follow-up project, A Lover’s Deceit, which promises to build on the saga of the two female lead characters.     About the Authors:
Raquel Eldridge (left) lives in Houston, TX, where she works in Accounting for a Corporate IT Company, performs as Associate Editor for Gospel Xpress Magazine, and is Communications Director for HELP Sister Connect.  Shawnte’ (right) resides in Toledo, OH, where she is mother to her daughter, Taylor, and works in retail as a bookseller and Administrative Assistant.  She’s also currently working to develop her company, PageTurner Publications.  More info @ www.prose-pros.com.   

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Written by rrpr

April 1, 2008 at 6:32 pm

Announcing Customer Service That Really Sizzles!

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For Immediate Release:

First Sizzler Restaurant in U.S. To Offer Full Service Located in Houston

December 21, 2007 – Houston, Texas – Mr. Assad Shorrosh, President and CEO of Shorco Enterprises Inc., announced today that his Sizzler steakhouse franchise located in NW Houston will be the first and only Sizzler Restaurant to offer full service in the United States.

Sizzler, a trusted restaurant brand, re-introduced their “fast casual” restaurants, a form of dining where the customer orders their food prior to being seated, to the city of Houston this year with a grand opening at FM 2920 and Kuykendahl in July 2007. The initial area response was “tremendous. Our opening was well above expectations,” says Shorrosh.

In the coming months, customer feedback revealed that interest in a “full” service style of dining had more appeal than Sizzler’s traditional “pay-first” method.

Shorco took the initiative in addressing the concerns by creating a proposal to modify the receipt of customers, the cost structure, and the introduction of new menu items in order to accommodate the public.

In early November, Anthony Shorrosh, Shorco business partner and head of operations for the restaurant, began working directly with corporate executives in California to propose the full service concept for the Houston market. Coincidentally, Sizzler was planning to implement this service style in Las Vegas, but as a direct result of Shorco’s proposal, Houston will be the first and only full service Sizzler in the United States.

Initial customer reaction suggests that the changes are welcome. Todd Peterson, Vice President of New Business Development at Sizzler’s offices in California, says, “It is still early in the test, but all indications are that this is a positive move, particularly in the Texas market.”

Since 1958, Sizzler has served great steaks, seafood and salad while emphasizing value comfort and convenience . Sizzler now owns or franchises more than 400 midscale, casual dining restaurants worldwide, with locations in Puerto Rico, Asia and Australia. Sizzler continues to frequently update and expand their restaurants and marketing efforts by research-driven brand strategy.

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Candace Runaas
Runaas Resources Public Relations
281.257.4431
info@runaasresources.com

Written by rrpr

January 3, 2008 at 7:03 pm

Posted in Texas, houston, new business