Fee-Based Portfolio Management
- Mutual Fund Portfolios $50,000+
- ETF Portfolios $50,000+
- Sector Allocation Portfolios $250,000+
- Individual Equity and Debentures $1,000,000+
- 401(k) Self Directed Brokerage Account Management
- Client/Advisor Co-Managed Account $1,000,000+
- FTJ mutual fund portfolios - $25,000+
There are two general types of portfolios, income or growth, and both are based on relative strength. The overall methodology attempts to identify and allocate portfolio holdings into sectors and investments that are currently leading when compared to other investments opportunities. The second strategy is like the first however, in addition to investing in current leadership, it also attempts to minimize portfolio volatility by using a calculated approach managing risk in portfolios.
The relative strength aspect, in sector allocation portfolios, keeps portfolios in the leading sectors and asset classes (including cash or bonds if those are leading) at all times. The nature of this rotation forces assets to be moved into asset classes that are currently performing, without having to guess what might perform at some point in the future. The relative strength aspect, keeps portfolios in the leading sectors and asset classes (including cash or bonds if those are leading) at all times. The nature of this rotation forces assets to be moved into asset classes that are currently performing, without having to guess what might perform at some point in the future.
I see risk as seen as something that is measureable as it fluctuates with market conditions. Therefore, creating opportunities to enhance portfolio allocations in different environments. Modern Portfolio Theory does not account for those changes in risk, being primarily focused on asset allocation. Risk managed portfolios can account for both.
The risk managed sector allocation portfolios have an individualized risk measure and discipline which forces me to reduce risk in portfolios, at a predetermined level (ie: 7% for a senior or 15% for a young investor).. In the risk managed portfolio, there is an additional risk ratcheted floor so as to attempt to lock in gains from portfolio peaks and prevent catastrophic loss during market corrections. Historically, this has done quite well in helping take profits when the market is coming off recent highs or keeping powder dry for when there are lower market risk opportunities.
Whether you are looking to generate more income or grow your investments for a future need, we can help you.
There is no new thing under the sun Ecc 1:9
Although there are different headlines in the news and different stocks traded on the exchanges at any given time, the one thing that remains consistent over time is human emotion. During highly volatile market inflection points, human emotion is a consistent and measurable indicator that generally isn't accounted for in any research reports or stock analysis. This methodology is by no means perfect however, it's a best effort attempt to measure perception, emotion, fear and greed, with the expectation that people will react to market stressors the same as they have in the past.
A quantitative approach to measuring risk has been developed to look at people and how they react to stock market price fluctuations. Regardless of education, wealth, knowledge, or any other factor that may make a person seem wise, people react the same way when fear or greed sets in. No matter how many times a fire drill is rehearsed, when a serious emergency presents itself, the exit is often not good.
Methodology for determining favored sectors
Chris believes it is important to identify market leadership and to determine whether a particular sector or asset class is in favor when compared to other investment alternatives. Technically, this is not a strategy for timing or predicting the market but rather, it is a process based on simple mathematical ratios (IE: SPY/Cash or SPY/XLB) to determine when one asset class is performing better than another. Properly calibrated, these ratios provide a precise moment when the trend in one asset changes compared to another.
In practical application, securities including cash, equities, bonds, or even commodities can become relatively more attractive versus another and hence, provide an investable opportunity within a managed portfolio. Using a calculated approach for identifying these meaningful trend changes as early on as possible, removes many of the emotional hazards to investing. When one asset class is performing better than another, it makes financial sense to want to own that asset until such time that the trend changes and other outperforming assets emerge.
There are three key factors to successfully implementing this portfolio management process. The first is having sufficient knowledge and understanding of the financial markets which takes time to acquire. The second is having adequate time and dedication to develop skill. The third is having the proper discipline to continually monitor the process. Many individuals have some or even all of these characteristics but, simply lack the time, interest, or expertise to dedicate themselves to managing their own portfolios properly. With the exception of those whom are confident in their knowledge, skill, and discipline to manage this process, it is strongly advised to seek professional assistance.