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Wealth Management & Preservation

Investing your money can be complex. With the advancement of technology, more people are investing and making moves quicker than ever before.  In fact, now that there is some type of stock market open somewhere in the world, 24 hours a day, coupled with our economic uncertainty, stock market volatility, mounting corporate scandals and threats to world peace, the importance of having the proper money management and risk management is as important as ever.

The key to investing is not about trying to beat a market index, it is not about which combination of investment styles you choose (growth or value). It is not about buy and hold strategies or periodic rebalancing of your asset allocation. It is not about which securities you buy. The key to successful investing is all about risk management. There are plenty of opportunities to make money in the markets. Successful investing requires one to manage volatility and to avoid large declines during difficult market cycles.

Most investors have suffered through more than a decade of extreme market volatility. Many investors actually lost money during this time. It has been said that the definition of insanity is doing the same things and hoping for a different result. Times have changed. The markets have changed. There is a market open somewhere in the world 24 hours a day and there is increasing interconnectedness globally. There are more investment choices than ever before. Thus, experienced portfolio managers are questioning and discarding many old theories and methods.

Much like the weather in Indiana, markets are ever changing. The temperature in your home remains consistent and comfortable because the thermostat manages your furnace and air conditioner to offset the changing outdoor temperature. However, a fixed percentage asset allocation or buy and hold strategy is too static to manage market risk during volatile markets. One way to manage risk and volatility is a process to adjust a portfolio’s diversification to offset the market’s changing volatility, similar to a thermostat. Today, revolutionary tools and processes have been created and designed to potentially benefit from market volatility and declining markets, and manage negative market events and turn them into opportunities.

Successful portfolio management is not an art or a subjective exercise. Portfolio management requires scientific rules based process that should be at least a dynamic as the markets themselves. The goal is to benefit from long term compounded returns by maintaining low and consistent portfolio volatility through all market environments.  The process adjusts a portfolio’s asset allocation and security holdings to match and potentially profit from virtually any market environment – Bull or Bear.

It may be time to update your strategy with the most proper tools, strategies and designs to handle investing in the markets in today's world.