WHY DYNAMIC ASSET ALLOCATION
As an experienced investor and adviser, I use an active management style which aims to outperform by participating in strong markets while reducing exposure to down markets.
Traditional buy-and-hold strategies work fine in a rising market.
Unfortunately, markets only go up about half the time, and
when markets go down, a buy-and-hold strategy can
give back hard earned gains.
KEEPING AN EYE ON THE CYCLES
If an adviser can track this movement, and take advantage of it by
buying low and selling high within the cycles,
it's possible to beat general market averages over time.
Investments are selected based on categories with the greatest potential for superior returns.
The allocation of assets becomes dynamic, changing in response to market conditions and perceived opportunities for profit.
This investment approach is called Dynamic Asset Allocation.
WHY DOES DYNAMIC ASSET ALLOCATION WORK?
The financial markets tend to move in reasonably predictable cycles.
Looking over a century of market history has clearly shown that investment categories behave differently at different times in the economic cycle.
The challenge is to use technical and fundamental analysis to identify where we are in the cycle and what investment categories appear to have the strongest potential for appreciation.
WE DON'T HAVE TO BE 100% RIGHT
The objective of Dynamic Asset Allocation is to
reduce risk without sacrificing return.
Eliminating risk from a portfolio is easy.
All one has to do is buy Treasury Bills. But with the lower risk
comes lower returns.
Using a wide range of fundamental and technical tools,
I strive to harness the potential benefits of volatile investments and
energize investor portfolios.
Not every investment decision will be perfect,
but over a full market cycle, a dynamic asset allocation approach offers the potential for superior risk-adjusted returns.
ETFs - THE INVESTMENT VEHICLE OF CHOICE
Although I can use stocks and mutual funds in portfolios, I prefer to
use Exchange Traded Funds (ETFs) in my Dynamic Asset Allocation portfolios to
further reduce risk by providing instant diversification across many securities within each asset class.