Retirement Planning. Investment Management.

CONNECT

Address:

6904 Springvalley Drive Suite 301
Holland, OH 43528

Phone:

888-510-2362

Fax/Other:

888-510-2362

Portfolio Management

How do I take advantage of growth in the stock market and protect my portfolio from the next prolonged bear market?

If you're retired or approaching retirement, you can't risk another devastating bear market like the 2008 financial crisis. But at the same time, you need your investments to grow so you can fund your retirement spending. How do you accomplish both?

Traditional portfolio management, based on Modern Portfolio Theory, suggests investors should be well-diversified and hold a fixed ratio of stocks and bonds in their portfolio depending on their risk tolerance regardless of market conditions. This old investment paradigm relies on bonds to reduce volatility and drawdown. That approach served investors well during the bond bull market from the 1980s to today, but may not be able to meet the challenges of a rising interest rate environment. A dynamic approach, on the other hand, has the flexibility to shift between different asset classes and adapt to market conditions. 

To help our investors maximize the probability of meeting their goals and reduce the risk of not achieving them, we've developed four different investment strategies, which we blend together to create an overall portfolio for a client. 

 

1. Fixed Income Strategy - Bonds have historically provided investors with less return than stocks, but also less volatility. Being historically less volatile investments, bonds may be able to provide a hedge against the volatility of equities. Bonds have held up well during many market downturns. The primary focus of this strategy is preserving principal and to accomplish this objective, the strategy invests solely in fixed income.

 

2. Diversified Equity Strategy - Modern Portfolio Theory forms the basis for this investment strategy. Modern Portfolio Theory
postulates that markets are random and efficient—that is that today's stock prices represent all available information about the companies that they represent. This theory measures risk in terms of volatility and attempts to build a portfolio that optimizes the risk / reward ratio. This strategy holds a diversified mix of assets across regions and industries. 

 

3. Dynamic Momentum Strategy - Market downturns are common and severe. Diversification may not be able to defend against these downturns, as different assets can become correlated and lose value in unison. Unlike a static portfolio, the dynamic momentum strategy has the flexibility to invest in any assets at any time. The goal of the dynamic momentum strategy is to maximize participation in bull markets and avoid prolonged market downturns. This strategy seeks to identify and invest in asset classes that are experiencing the strongest growth relative to other asset classes.

 

4. Focused Sector Strategy - The market is composed of various sectors, subsectors and industries. During any given year,
these sectors may perform differently from the market at large. Some sectors outperform the market and some sectors
underperform the market. In years the market's performance is poor or even negative, there may still be specific sectors that are profitable. Unlike a traditional stocks and bonds portfolio, this strategy seeks to take advantage of growth trends under the surface of the market. 

 

Want to learn more? We would love the opportunity to discuss our strategies in more depth with you. Call us at 888-510-2362 or use the link below to send us a message.

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