Decision Making Process:

While it's true that no one can predict the stock market, technical analysis does let you measure risk levels within asset classes to determine when it might be appropriate to gain exposure for maximum growth or when risk levels suggest limiting exposure to minimize possible losses. Our management approach assesses these conditions on an ongoing and proactive basis to make adjustments in portfolios to match market conditions as they change. Our three step tactical plan is:

Step 1 -  Determine the short to intermediate term direction and the overall risk levels of the market so we know if we need to be on offense or on defense

Step 2 -  Invest in areas of relative strength and not spread out our investments in all asset classes including areas we know are not performing for the sake of diversification

Step 3 -  Have a systematic sell discipline in place to do our best to control losses as determined by each client’s loss tolerance creating a safety net for their portfolios.

We believe it is this simple three step tactical management plan which allows us to be systematic in our approach and not waver from our core principles.  Most advisors who try to implement a tactical approach do not have a systematic plan in place which means they are really just managing by instinct and gut intuition which can be dangerous in this environment.