At New West Investment Management, Inc. we recognize that asset prices are a function of an enormous number of complex inputs. Investment strategy can go awry as a result of the factors that are not considered, ignored or deemed to be unknowable. Furthermore, factor influences can lay dormant for long periods of time, and thereby render research undertaken a waste of resources, only to be become the driving or exclusive force in asset pricing in very short order. The following list of global considerations is ordered by level of importance:

  1. Governmental Stability
  2. Established Rule of Law
  3. Economic Philosophy
  4. Public Policy
  5. Market Systems
  6. Demographics
  7. Regulatory Structures
  8. Economic Environment
  9. Currency Interaction
  10. Industry or Segment Conditions
  11. Company or Entity Specifics
  12. Security Type and Detail
  13. Investment Alternatives

These factors are then overlaid with investor expectations and human psychology. As such, it is easy to understand the volatility of assets prices. While some investors focus on only a few of the above items, at New West our approach to constructing and managing investments integrates a deep understanding of these factors with the economic goals of our clients in order to properly allocate assets in a portfolio.


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