Investment Risk Management
Identifying and managing risks impacting your investments
Risk Management, Not Market Timing
We recognize that markets are inherently unpredictable, and attempting to time them consistently is not a prudent long-term approach.
Instead, we focus on identifying and managing risks impacting our clients' investments. Through ongoing monitoring, rigorous analysis, and periodic adjustments, we aim to mitigate risks and seize opportunities that align with our clients' objectives. This proactive approach to risk management can help protect capital during market downturns and preserve long-term wealth accumulation.
We firmly believe that by staying focused on our clients' goals and managing risk prudently, we can add significant value to their portfolios over time.
Our Proprietary Approach to Investment Risk Management
We have developed a set of comprehensive economic and policy indicators that serve as the guidance for our investment risk management system. We call these indicators our Investment Road Signs© and these indicators help us determine whether we are currently on an Investment Highwayᵀᴹ or facing an Investment Detour Strategyᵀᴹ. Below is a description of each to help you better understand our process:
We look at a range of robust economic and policy indicators that act as signals, providing valuable insights that aid us in understanding the level of risk in the current investment environment.
Investment Road Signs©
We look for periods of relative stability and normal returns across our clients' portfolios when little to no economic and policy indicators are present. Typically, these periods extend over multiple years, providing a favorable environment for long-term growth. During these periods of relative stability and normal returns, we aim to capture sustained market opportunities and maximize returns over extended periods.
Investment Highwayᵀᴹ
Investment Detour Strategyᵀᴹ
We look for signals that have historically forced a detour from periods of relative stability and normal returns. These periods are characterized by high volatility, market uncertainties, and potentially challenging returns. During these more volatile periods, shifting from expensive assets to more reasonably valued assets is our typical approach.
