Monthly Review & Outlook
Monthly Review & Outlook Video
We believe the long term upward bias to the global markets suggests that we should be fully invested most of the time. However, there are rare occasions when extreme market dislocations warrant raising significant amounts of cash, and deciding when to raise cash is one of the most impactful decisions an investor can make. In this video, we discuss our methodology for raising cash (the Cash Indicator) and explain how this well-defined process can help guide investors through the cash raise and reinvestment decision.
We believe that investment decision making requires a well-defined process and framework, and it must acknowledge the behavioral tendencies individual investors face when making complex decisions. In this video, we provide an overview of Multiple Scenario Analysis (MSA) and discuss how it helps us make complex decisions and manage risk in real time.
We combine strategic and tactical asset allocations in our portfolio solutions. The longer-term strategic allocation is approximately 75% of the portfolio and focuses on a 3- to 5-year outlook. The shorter-term tactical allocation accounts for approximately 25% of the portfolio and focuses on a 6- to 18-month outlook. In this video, we discuss how this combined approach allows us manage portfolios to specific risk targets and helps investors stay the course to achieve their long-term goals.
The field of behavioral science is taught in a very theoretical manner and investors enjoy the anecdotal evidence and case studies that teach us about the human brain and the science of decision making. However, the application and practice of behavioral finance rarely makes it to the implementation phase for investors, and in many cases the science is ignored when dealing with real life, high stress situations. In this video, we discuss how we have bridged the gap between the theoretical and the practical application of behavioral finance to create solutions that address the most prevalent issues facing retail advisors and clients today.
In this video, we give a brief overview of our innovative investment management process. We believe that our process for our global ETF allocation solutions can help investors stay the course by including components of behavioral finance, blending strategic and tactical allocations and overlaying our Cash Indicator.