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The Multifactor Approach

The multifactor approach to investing combines multiple variables, like size and volatility, with the goal of achieving more consistent performance over time. The idea is that when one factor is underperforming, the other factor may be outperforming.

There are merits to various approaches to investing, whether you’re seeking out lower volatility or larger returns. However, over time, even investments traditionally associated with good long-term performance will occasionally underperform. The idea of multifactor investing is that different factors perform well at different times, and the diversification may be able to help avoid volatility.

The multi-factor approach is based on the following tenets:

  • Similar stocks tend to have similar risk/return profiles
  • Filtering information mathematically instead of qualitatively allows for the identification of specific underlying factors that drive returns
  • This mathematical approach eliminates human or subjective behavioral biases

Please remember that investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

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Ryan Keapproth

Ryan Keapproth

Retirement Planner

Ryan is dedicated to serving clients to achieve their retirement goals. Ryan’s holistic approach centers on wealth management strategies with a focus on income planning throughout retirement. As a Financial Advisor, Ryan is an Investment Adviser Representative (IAR), life and health insurance licensed and a Certified Tax Preparer. Ryan is a graduate of the University of Minnesota, with an Accounting and Finance major.

Ryan is a lifelong Minnesotan originally from Woodbury and currently residing in Bloomington with his wife, Riamae, and their rescue Terrier Beagle mix, Douglas. He and his family are avid travelers in their free time. Ryan enjoys playing golf and poker, and describes himself as a major foodie enjoying new restaurants around the cities whenever possible. He is a sports fan especially when the Vikings and Timberwolves are playing.