Our portfolios are constructed using an Asset Allocation Strategy which is based on the only four cycles the US economy can be in at any one time.
At any one time, the economy will be in one of the four economic cycles listed above. The secret of the strategy is to know when to be invested in a particular asset class and when to avoid a particular asset class. Using proprietary indicators that we have developed, we change our portfolios on the first or last day of every month so that we are invested in the two best asset classes for that month.
The four asset classes listed above are the only ones you need to own in order to have the opportunity to prosper in all types of markets. No matter what economic cycle the country is experiencing, one or more of these asset classes may provide a positive return for the year. In 2008, while the stock market lost over 35 percent, the Bond, Commodity and Cash asset classes all had positive returns.
We believe the strategy we began using in 2011 would have given you the opportunity to make money in 2008 when the stock market lost over 35 percent. Our strategy is based on backtesting of past market data, not actual client returns. The limitations of backtesting are fully explained in our disclosures.
This allocation endeavors to provide growth and income while controlling volatility. We attempt to prevent you from being subjected to the wild crazy swings in the stock market that cause people to lose their life savings. These assets are always present in the portfolio in a balanced way, no matter what is going on in the economy. They are designed to offset each other so that a majority of the assets in the portfolio might rise no matter which economic cycle the economy is experiencing.
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