Investment strategy refers to a plan or approach that an investor uses to allocate assets in a way that aligns with their financial goals, risk tolerance, and market conditions. It encompasses the methodology for selecting investments, including the types of assets (such as stocks, bonds, real estate, etc.) and the timing of buying and selling these assets. Investment strategies can vary widely, ranging from passive strategies—like index investing, which aims to replicate the performance of a market index—to active strategies that involve frequent trading and market timing to outperform the market.
Common categories of investment strategies include growth investing, which focuses on companies expected to grow at an above-average rate; value investing, which seeks undervalued stocks; and income investing, which aims to generate regular income from investments, typically in the form of dividends or interest. Each strategy considers factors such as market trends, economic indicators, and individual investment objectives. Overall, a well-defined investment strategy helps investors make informed decisions, manage risks, and work towards achieving their financial aspirations.
The S&P 500 and Nasdaq both experienced declines in February, with consumer confidence indexes revealing a wary spending climate. A geopolitical meeting between U.S. President Trump and Ukraine's President Zelensky…