Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: AznGunner on April 08, 2016, 03:17:24 PM

Title: Strategy advice!
Post by: AznGunner on April 08, 2016, 03:17:24 PM
Hey all,
     I've been aggressively investing in LC....aiming for 19% or better, focusing on C,D,E,F and G's.  My NAR is showing 8-10% return.  For my re-invest, should I continue to pursue all riskier notes or would bringing in some A's and B's be the wiser move?  My account is slated for long term...no need for immediate distributions....also, I've been mainly going for 36 month notes.  Any advice is appreciated. 
Title: Re: Strategy advice!
Post by: Emmanuel on April 08, 2016, 03:38:53 PM
That may help to answer your question: http://blog.lendingrobot.com/research/on-the-mark-with-markowitz-diversification-part-1/
Title: Re: Strategy advice!
Post by: rawraw on April 08, 2016, 08:48:54 PM
I'd personally tone down the risk, but I tend to be more risk averse than most on this forum.  Maybe because I've spent too much time seeing how much pain bad decisions made years before can cause all at once.
Title: Re: Strategy advice!
Post by: Gatsby on April 10, 2016, 01:53:57 AM
What are the filters you recommend?
Title: Re: Strategy advice!
Post by: Fred on April 10, 2016, 02:33:02 AM
That may help to answer your question: http://blog.lendingrobot.com/research/on-the-mark-with-markowitz-diversification-part-1/

Nice analysis!  It's been a while since I last saw Efficient Frontiers.

The first point on Frontier (top-right) with "all E grade portfolio" has been on my radar for my years, but I never implemented it.

Analysis like this should give clues to LC on how to set their interest rates.
 
Title: Re: Strategy advice!
Post by: Lovinglifestyle on April 11, 2016, 02:08:55 PM
That may help to answer your question: http://blog.lendingrobot.com/research/on-the-mark-with-markowitz-diversification-part-1/

Thanks.  I found this really interesting, especially the last chart about the Efficiency Frontier.  I attempted to muddle through the whole page and don't pretend to understand it very much, but it seems convincing along with the limitations and caveats.