Investment Models

This model is not designed to manage downside risk in any way and would only be appropriate for the most aggressive investors, or those who are using a strategy that could potentially benefit from volatility such as dollar cost averaging.  Assets will be fully invested (except for 2% in cash) in whatever asset class we deem to have the highest growth potential with little to no regard for short term fluctuations.  No capital protection strategies will be employed.

This is our most flexible model in the sense that we have the ability to be as aggressive or conservative at any given moment as we believe market conditions warrant.  Assets have the potential to be fully invested (except for 2%) in equities or whatever asset class we deem to have the highest growth potential.  However we will implement hedging strategies and potentially reduce our exposure to market fluctuations in the short term if we believe that market conditions warrant it.

This model is designed to give us a great deal of flexibility in our asset allocation to adapt to current market conditions, while still putting a modest limitation on the maximum risk exposure in terms of asset class.  We intend to maintain a target of approximately 20% of the assets in what would be traditionally considered lower risk investments such as cash and fixed instruments.  The rest of the assets will shift between more growth oriented or conservative investments depending on market conditions.

This model will most resemble a balanced portfolio with a slight growth bias.  It is our intent to maintain a target of approximately 40% of the assets in what would be traditionally considered lower risk investments such as cash and fixed instruments.  The rest of the assets will shift between more growth oriented or conservative investments depending on market conditions.

The objective of this model is to provide long term returns that are slightly higher than money market and CD rates with the least amount of short term volatility.  Our target asset allocation during what we consider to be normal market conditions will be approximately 20% cash equivalents, 40% fixed instruments, and 40% equities.  During times when we deem the risks to any of these asset classes to be higher than average we will reduce the exposure in favor of other options.