What Makes Us Different
We take a different view of the market. Advice based on asset allocation, index funds and life cycle models have proven to be very ineffective in managing risk. Our view is that risk can be actively managed by taking advantage of the cycles within market segments.
We call our approach Safe Harbor Investment Portfolio (SHIP). Your SHIP should be seaworthy, a strong stable hull with sail options to take advantage of favorable winds. Along with that you need the forecast for future conditions so that you know when to stay out of the storms.
The first step is to establish a strong base (the hull) by devoting a portion of the assets to hedges against inflation but protecting against severe market corrections. The balance of the asset base (the sails) is in more moderate positions, but moved in and out of harm’s way (safe harbor) depending on the market cycles. Success is predicated on having exceptional analytical tools to predict trends and strict rules for when to take or limit risk.
These two parts, sound and solid construction, and reliable forecasting can greatly improve results over the “buy and mold” approach.