|
After studying 19 bear markets over the last 100 years and more recently the 1973-1974 recession (market down 41%), the 1987 October market crash, 1990 recession, 2000-2002 down market and the most recent 2008-2009 down market, Multop Financial has adapted accordingly. We have become more flexible with our long-term asset allocations by using tactical adjustments when conditions dictate.
In a volatile market we will readjust client portfolios using more market neutral and absolute return investments (i.e.; more alternative investments).
Our long and short term goals and strategies are to "manage risk" and "enhance alpha" (a positive alpha means the advisor or money manager is adding "real value" to your portfolio). Our solution to these challenges is a mixed asset allocation model offering:
- Diversification
- Potential to generate "alpha" (increased value)
- A high degree of flexibility
- Reduction of market risk
In lieu of stocks, bonds, mutual funds and ETFs being at the core of your portfolio, we use non-market alternatives and absolute return products in order to generate more consistent positive returns.
Investors have shown an increasing interest in this alternative strategy for these reasons:
- Strong performance and low correlation with traditional assets
- Potential to generate diversified forms of alpha and potentially create positive returns irrespective of market conditions
- Provides a high degree of flexibility because investment strategies are not bound to traditional benchmarks
- Low volatility
- Dedicated risk management systems and monitoring processes to ensure risk is controlled
- Effectiveness is linked to the manager's ability to constantly add value across a range of market conditions
Please keep in mind that diversification among non-correlated assets is a strategy designed to reduce risks that are unique to a specific investment or asset class; however, diversification cannot eliminate the risk of loss.
If you are interested in discussing this and other strategies in more detail, contact Tyler Ryan at tyler@multop.com or call us at (360) 671-7891 to schedule a consultation.
| 
