We FocWe Focus On Four Areas of Financial

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Dynamic, Quant-Based ETF Models Designed to Outperform the Market

Investing Has Changed



Since the ‘60s, “Buy and Hold” has become the most recommended way for average investors to realize long term investing success.

Much of the support for “buy and hold” is based on studies showing that investors rarely follow a proven, repeatable process in deciding when to buy and sell. Given that fact, it makes sense to advocate "buy and hold" especially when you demonstrate its efficacy using market performance data from the last half of the 20th century... a period during which the  U.S. market rose by over 8,000%.1

No doubt a "rising tide lifts all boats", but is it realistic to base today's investing decisions on a bet that those kinds of across-the-board gains will continue?

After experiencing the 2008 "crash" when virtually all sectors…even bonds…were affected,  many investors aren’t so sure.2

Clearly, today’s investing world is permanently different. Now we have computer driven, high frequency trading where money moves freely in and out of sectors around the world and real-time performance feedback is available to many.

The classic big-name-advisor approach…a mix of bonds and dividend paying large cap stocks with minor “tweaks” to small and mid-cap, international and emerging markets stocks… may no longer be advisable, especially as sectors have become increasingly correlated.2

And for investors who may not have the luxury of staying fully invested “for the long run”, holding-on can be disastrous. Consider the impact to your future should we experience a repeat of the 1999-2011 period when the market gained nothing1…a large chunk of your “buy and hold” investing life could literally produce no significant gains whatsoever.


Minimizing Losses


The importance of preserving account values in down markets can not be overestimated...once an investment has lost 50%, it takes a gain of 100% just to get back to "break even"…so holding on to market-based investments can be self-defeating when the market is tumbling. From its peak in October of 2007 to the bottom in March of 2009, the S&P 500 Index lost 51.5% of its value…a decline that took over 4 years to undo.1


"Avoiding downturns is critical to long term investing success"...

We believe that a disciplined approach based on actual performance data from the most recent, dramatic market cycle is likely to give our clients the best opportunity to continue to prosper, regardless of future market direction.


1 YahooFinance, Historical Prices, S&P 500 Index http://finance.yahoo.com/q/hp?s=%5EGSPC&a=00&b=3&c=1950&d=11&e=31&f=1999&g=d

2 Chiang, Thomas Chinan and Li, Jiandong, The Dynamic Correlation between Stock and Bond Returns: Evidence from the U.S. Market (March 17, 2009). Available at SSRN: http://ssrn.com/abstract=1362225 or http://dx.doi.org/10.2139/ssrn.1362225

Client results may differ. There are risks involved in investing including possible loss of money. The S&P 500 is an unmanaged index of 500 widely held stocks that’s generally considered representative of the U.S. stock market. Indices are unmanaged, do not incur fees or expenses and, cannot be invested in directly