Investment Process
Our investment process uses a combination of Strategic and Tactical asset allocation. Strategic asset allocation is used to provide diversification. Tactical asset allocation identifies long term trends, entry and exit points.
Strategic Review
Our Strategic allocation process starts with a top down analysis of the economy, business trends, interest rate, money supply growth, and asset class valuations. We then compare those selections with our tactical asset allocation system. Both models have to agree for selection to the portfolio. Portfolio adjustments are made based on changing macro conditions, valuation issues, better opportunity, or a signal from our tactical model.
Tactical asset allocation* is used to adjust asset allocation in a timely manner. Tactical asset allocation is also used as a capital preservation strategy during long periods of market decline. Historical data indicates that during large declines in the financial markets diversification may not prevent large losses.
Our Tactical Allocation process starts with back tested quantitative computer models design to limited losses during declining market environments. The models are also designed to capture a significant portion of advancing markets. They have been back-tested to optimize returns.
*This strategy does not guarantee a profit nor guarantee protection from a loss of principal.
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