Is your current Advisor Proactive or Static?

 

Many managers and financial advisors subscribe to Modern Portfolio Theory, which is based on the premise that if you buy and hold a diversified portfolio for long periods of time, you will make money.  This is true and works very well in rising markets, BUT the market is not always rising.  Following a buy and hold approach in a flat or declining market can be devastating to your portfolio.  The managers of PIMCO (the world’s largest bond management firm) say it best in a Barron’s article in October of 2009 titled Seeking Safe Returns in a Perilous World:

 

“The majority of people who use the modern-portfolio-theory approach recognize that it has many shortcomings.  Anyone who has done it more than a year recognizes how far off their estimates of expected returns are by asset class and how far off their expectations of volatilities and correlations are.  It is a very elegant approach, but it doesn’t really work that well.”

“You can’t be so long term that you don’t pay attention to current events. We think asset allocation, certainly over the next 5 to 10 years, begs for a tactical component that is very hard for many investors to deal with because they aren’t structured to think about macro things like equity exposure while adjusting for micro elements like relative valuations on a daily basis.”

 

At Henney Wealth Management we know that navigating bear markets requires proactive measures.  That is why we us a global tactical proactive strategy to analyze and capitalize on volatility and global market trends. We watch the market and act; buying or selling depending on current trends.

The Henney Wealth Management strategy is derived from top-down economic analysis, and unbiased market research.    

 

MACRO

 

 A research-based approach, the strategy starts with the most important factor – the Macro View.  We utilize macro research from independent strategists, not Wall Street.  This allows us to operate without biases or conflicts to develop a clear and rational perspective of the world’s economic and investment landscape.  This perspective allows us to make financial decisions resulting in tangible performance results for your investment portfolio.  

 

ASSET SELECTION

 

Once the overall view is established, the strategy will identify asset classes that will benefit from the MACRO view.  This includes areas ranging from traditional equities and fixed income to market sectors, global currencies, commodities and alternative/hedged asset classes.  Groundbreaking innovations in Exchange Traded Funds (ETFs) have greatly enhanced the strategy’s ability to invest according to the MACRO view.  

 

SECTORS/MANAGERS  

 

Finally, once the desired asset classes are determined, the strategy searches all available investments and selects the highest conviction funds and/or ETFs for our clients’ portfolios.

 

RISK MANAGEMENT 

 

This entire process is borne from our client’s desire to reduce risk over the course of market cycles.  After listening to our clients for over 15 years, we feel that this research-oriented process delivers the desired results.  

 

The flexible mandate of strategy allows for a change from offense to defense as global market conditions warrant – this flexibility is what defines our Tactical Strategy – and defines investment success!  

 

The most significant advantage of a successful Tactical Strategy is that your portfolio will be more aggressively allocated during favorable market conditions and defensively allocated during unfavorable market conditions.  A research-driven process eliminates the most common mistake made by investors throughout time – emotional-based decision making.

 

To learn how Henney Wealth can get you results, call 310-571-1277 or email Henney Wealth now.