Our approach to investing is based on trend following, relative strength and risk management disciplines. That may sound complicated, but don’t let the technical language intimidate you. The process is simple and easy to understand.
Our strategies allow the portfolio manager to move assets around the portfolio to take advantage of new opportunities as markets change. Our strategies use a disciplined investment process to tactically allocate your portfolios based on market risk. Our models focus exclusively on market-based data designed to offer better diversification and risk management than traditional asset allocation strategies.
Our approach is different than the typical “buy and hold” approach that prevents a manger from improving a portfolio’s performance as market trends and opportunities change. Some buy-and-hold strategists rebalance their portfolios quarterly or even annually. Our managers are more flexible. They can move assets around whenever necessary, especially when market risk becomes excessive. When risk is too high, Secure Investment Management will increase cash, or hedge to protect your assets.
Our strategies are composed of ETFs, stocks, and closed end funds, in major asset classes, with additional asset class exposure that may include sector-specific, country-specific, commodity, and currency asset classes. The allocations are tactically managed based on risk in the marketplace. Our decisions are made by utilizing research and evaluation techniques that attempt to evaluate the supply and demand forces of particular asset classes. We rank each class from strongest to weakest, based on relative strength (RS).
Asset classes can be ranked similar to the way one might rank sports teams; teams get ranked based on how well they perform against their opponents. The more games, matches or races won, the higher in ranking the team will go. The same process can be done with investment asset classes. The ranking process allows us to focus on the top performing investment areas, including cash, and overweight those areas of the market exhibiting strength.
This approach provides a systematic and disciplined way of overweighting asset classes when they are in favor and it also provides a way of putting cash holdings, such as money markets, into the mix when there is no better place to be.