Our Investment Thesis
Portfolios Perform Based on What They Hold
Being invested in the right assets determines how a portfolio will return regardless of what other factors are being used to help make trading decisions.
“90% of an investment portfolio’s performance is directly linked to how its components are allocated.” ¹
¹ Gary P. Brinson, Brian D. Singer, and Gilbert L Beebower study pub. 1991
Algorithms remove the emotions to help drive returns and reduce volatility
Emotions are what make us human and strongly influence our decision-making. However, when stress increases our emotions, it can lead us to take irrational actions. History has shown that financial markets have a tendency to punish those who act on emotions. Math-based signals remove emotions and stress and maintain sound market principles even during market volatility.
Minimizing the cost of loss reduces portfolio recovery time
Large portfolio losses can be devastating to buy-and-hold investors who may not have the time or patience to withstand a long recovery time. According to a forty-year historical study by Craig L. Israelsen, Ph.D, “a portfolio invested completely in the S&P 500 Index that loses 50% has nearly a 0% chance of recovery within one or two years. In fact, there is only a 7.9% chance of recovery within three years, and a 36.1% chance of recovery within five years.” ²
² The Math of Gains and Losses. Sep 9, 2010 / By Craig L. Israelsen, PhD
FOR FINANCIAL PROFESSIONAL USE ONLY.
ALL RESULTS ARE HYPOTHETICAL & ARE NOT RECOMMENDATIONS ON WHICH SECURITIES TO PURCHASE. INVESTING ALWAYS CARRIES RISK THAT CAN CAUSE SIGNIFICANT LOSSES.
FOR FINANCIAL PROFESSIONAL USE ONLY.
ALL RESULTS ARE HYPOTHETICAL & ARE NOT RECOMMENDATIONS ON WHICH SECURITIES TO PURCHASE. INVESTING ALWAYS CARRIES RISK THAT CAN CAUSE SIGNIFICANT LOSSES.
FOR FINANCIAL PROFESSIONAL USE ONLY.
ALL RESULTS ARE HYPOTHETICAL & ARE NOT RECOMMENDATIONS ON WHICH SECURITIES TO PURCHASE. INVESTING ALWAYS CARRIES RISK THAT CAN CAUSE SIGNIFICANT LOSSES.
