Our tactical approach allows us to work with you to incorporate specific restrictions and/or act unconstrained, e.g. willingness to exclude specific assets or sectors, underweight/overweight specific assets or sectors, or hold cash, as needed to our clients’ portfolios. This tactical approach is based on four metric categories:
- Individual price relative to historical averages (Free cash-flow, earning, and book value)
- P/E relative to historical average for asset/sector/market.
- Asset or sector percentage relative to the 200 day moving average.
- Changes in forecasts or probabilities of market influences, e.g. interest rates, inflation, exchange rates, tax policy, geopolitical environment, natural events, supply/demand, changes in market structure, Fed Policy, etc…
We will build your personal investment portfolio with low-cost securities, i.e. stocks, exchange trade funds (ETFs), and "no-load", institutional bond funds. This philosophy allows transparency, i.e. you know what you own, and also allows your portfolio to be modified to suit your needs and managed for tax savings. Once established, we will monitor and adjust your tailored portfolio in response to new opportunities and changes in economic outlook.