Active Portfolio Management

How do I grow my portfolio and protect it from the next bear market?

This is a question people near retirement ask us all the time!

We get it! You want to remain aggressive so you can grow your portfolio and fund your retirement, BUT you can't risk another devastating bear market like the 2008 financial crisis. You need to maximize the growth and protect your portfolio from protracted declines. How do you accomplish both?

Traditional portfolio management, based on Modern Portfolio Theory, suggests investors should simply "buy and hold." This approach relies on diversification and a fixed percentage of bonds in a portfolio to reduce risk.

We feel that this approach has major flaws and is inadequate for today's retirees. Here's why:

1. Bonds do a poor job of reducing risk. Most people believe that when stocks go down, bonds will go up and provide protection. But history has shown this is not always the case. In fact, much of the time stocks and bonds are positively correlated--meaning they move in the same direction.(1) Furthermore, bonds have risks of their own! Simply buying and holding a fixed percentage of stocks and bonds is not always the best idea. 

2. Diversification does a poor job of reducing risk in extreme market events. Diversification assumes that you can reduce risk by spreading your investments among many different asset classes. And most of the time this works pretty well. But during extreme market downturns, like the financial crisis of 2008, stocks tend to perform similarly no matter their asset class--and plunge together.

3. Buy-and-hold relies on having LONG time frames and ignores the potential volatility of the market. Investors near retirement don't have decades to invest. Markets can be very volatile over the short term. Extreme events are more common than we like to believe. From 1900 to 2014, the S&P 500 has had numerous 1 year periods with declines of more than 50%, and 5 year periods with declines of more than 15%. That kind of negative return would devastate any retirement plan.(1) 

Surely, there's a better way!

There is!

We believe a dynamic and flexible approach that can adapt to market conditions is a better way to manage risk and a more prudent investment aapproach than buy-and-hold. 


Our Process

We use quantitative and technical analysis to analyze the markets to determine if the markets are in "bull" status or in "bear" status. Our goal is to be fully invested in bull markets and to be defensive and protective during bear markets. 

Wondering what that means??

We'd love to show you how our process works. We'll give you an in-depth tour of our portfolio management system and decision-making process that guides how we invest for our clients. Schedule a meeting by clicking the link below:




We provide:

  • Active risk management using our proprietary investment process
  • Active tax-loss harvesting for taxable accounts
  • RMD and dividend distributions for income-oriented investors
  • Weekly analysis and rebalancing of your portfolio if needed

Clients also receive:

  • Weekly market updates which include:
    • Current status of our indicators
    • Analysis of market trends
    • Profit making opportunities we see
    • Investment decisions in your portfolio and rationale
  • Monthly portfolio report and check-in
  • Quarterly phone conference
  • Annual portfolio and strategy review meeting



(1) Adam Butler, Michael Philbrick, Rodrigo Gordillo, Adaptive Asset Allocation (Hoboken, NJ: John Wiley & Sons, 2016).