This has been one memorable period. The Dow crossed the 10,000 level in both 1999 and 2009. Two of the largest bear markets occurred during this period. Many traditional investment theories, including those taught in MBA programs, didn’t work. Despite this, we find people are still following the same failed investment approaches.
What if yet another bear market is near? Sure, stocks move higher over the long run, but the definition of “long run” has changed.
The goal for Tactical Allocation Portfolios is to be an “all weather” portfolio, one that can do well in any market environment. Until the 2007-09 bear market we believed we could accomplish this goal through sector investing. During the bear market, however, all sectors fell. In order to create an all weather portfolio, one that can rise even in a bear market, inverse funds must play a key role.
After performing many thorough tests, we developed an all weather mechanical model using the new breed of ETFs. With ETFs, we can easily rotate to long equities, short equities, commodities, currencies (i.e. short dollar), or international markets.
Finally, a market independent approach is available to every investor!
Our closest competitors are hedge funds. Here are our advantages:
Our client contract is short and easy to understand. You won’t need to hire an attorney to read a lengthy contract.
We trade your account at Fidelity Investments. We do not take possession of your funds. You can monitor your portfolio at Fidelity’s web site.
Unlike most hedge funds, there is no fee on profits.
