Smart Indexing – a Thermostat & Thermometer


Thermometer & Thermostat
Investment professional, do you have a consistent, reliable, process for interpreting the market and responding accordingly in your client’s portfolios? I’m not speaking of forecasting here! Forecasting is a futile practice fraught with the corruptibility of: emotion, opinion, and bias. No, I am speaking of an approach which allows you to get translate the current market condition, much like a thermometer interprets outdoor temperatures. The beauty of thermometer is it’s grounding in the present moment, it does not care about the past or future – it’s indifferent to the noise of forecast, prediction, and opinion. You make decisions based on the now, and adjust the thermostat accordingly.  If you do not have a process that can help you make decisions based on the present moment, then I implore you, get one!

Surviving Without a System
Do you grow weary of the noise in the system? Doesn’t it get hard to hear yourself think sometimes, let alone develop a clear framework for managing and responding to current market trends and risk? Clients want and dare I say need a dynamic approach to portfolio management – one that embeds aggressive risk management into the process – more than they need an opinion.

Having been an adviser, I don’t know how I survived without a systematic process which removed my opinion, emotion, and bias.  Looking back, it seemed all I did was regurgitate all the circulated sounds bites and noise flowing at me daily. I had massive information overload, and was missing the market cues that were present, and in plain sight. Missing the clues and cues cost me and my clients lots of grief, opportunity, and most importantly the growth and preservation of precious capital. I know, you too, have been or even are in this position. The two ugly bear markets in the last 17 years that tested our professional fortitude and with the market doing so well, it’s a welcome relief to a decade of lost returns. However, it seems like the professionals and investors, I speak with, are just waiting for the next shoe to drop, with the majority not feeling very confident with their portfolio management approach. By that I mean, how to properly respond and adjust for the next storm.

Trend Rotation System
A decade ago, I set out to develop a systematic process that would provide a better investing framework for myself, professionals and their clients. A process that was grounded in academic research, simple to understand and communicate and could be modeled and systematically applied. Today that process is Smart Indexing. Smart Indexing employs a proprietary Trend Rotation System (TRS) which is grounded in the academic research regarding momentum (trend following).

With Smart Indexing, investment professionals don’t have to worry about the market going up, down, or idle. You can cut out the barrage of noise and opinions coming at you each day. Smart Indexing is designed to be both a Thermometer as-well-as a Thermostat – reading the current market conditions and then responds via a rule based process to adjust models in an appropriate manner. The best part is we’ve embedded intelligent risk management right into all our Smart Indexing strategies.

With Smart Indexing, you can relax knowing you are following a systematic process that benefits both you and your clients over the long term. You don’t have to feel like you are leaving investors vulnerable to the mercy of the market.  Smart Indexing frees up your precious mental capital to focus on building your business as-well-as your client relationships and help you gain a competitive edge and a compelling story Smart Indexing gives you, the professional, the ability to articulate a valuable process for positioning, profiting, and preserving client capital.

Let Them Eat Cake
Be better than the ROBO-adviser who is driving low margin business into the dangers of MPT.  “Let them eat cake…” I say! Wouldn’t you rather tell a more compelling story? Smart Indexing can be your dynamic systematic approach and process for understanding the market (thermometer) and responding accordingly (thermostat) – a ROBO alternative for your practice.

As the market continues to force advisers to adapt or be swallowed up – Smart Indexing offers professionals the opportunity to adapt and differentiate their practice. Best of all Smart Indexing it’s low cost, seamless to implement, and takes advantage of the powerful benefits of indexing. Need solutions for a CORE component? We’ve got that. Value? Growth? Got those too. Global? Yes. U.S. Equity? Total Return? Fixed Income? Yes. Yes. Yes. We have over 17 different strategies for you to implement within your practice – you can check those out by going to: SQR Smart Indexing. Remember – a good process drives better outcomes! 

Want to Learn More
If you would like to learn more about Smart Indexing then contact me today, and SQR will give you “free access” to our SQR 500 Smart Indexing model.

Be well – 



At SQR, we provide Smart Indexing strategies, with embedded risk management, to position, profit, and preserve investment capital. We view the market through a proprietary Trend Rotation System (TRS), grounded in momentum and relative strength. Our goal is to remove opinion, bias, and emotion from the investment selection process to achieve market beating performance.
At SQR we take a quantitative approach to selecting markets, constructing models and managing risk. Our Smart Indexing models are designed to systematically adapt to market risk – seeking growth of capital in bull markets and preservation of capital in bear markets.


The materials provided on and through this site constitute a publication provided by SQR (“Publisher”). The Publisher is not a registered investment adviser as defined under the Investment Advisers Act of 1940. SQR materials are provided by the Publisher pursuant to Section 202(a)(11)(d) of the Investment Advisers Act of 1940. SQR materials constitute bona fide publications of general and regular circulation offering investment information of an impersonal nature to subscribers and/or prospective subscribers.
The information and materials provided on this website and through electronic communications are provided as a general source of information on finance and investment topics. While all reasonable efforts have been taken to ensure the accuracy of the materials provided, Publisher cannot and does not guarantee or warrant the accuracy or completeness of such information. The information provided by Publisher is not intended as specific, personalized investment advice, and may not be updated. Consult with a registered investment adviser prior to entering any investment transaction.
The materials provided by SQR may focus on certain market conditions or events to highlight a specific investment occurrence. Past performance does not guarantee future results. You should not rely on any past performance of an investment or market as a guarantee of future investment performance. Investment conditions fluctuate constantly as does the performance of specific investment vehicles.
Publisher and individual authors of materials on SQR may from time to time take positions in individual investment vehicles discussed in materials published on the site. Such positions will be disclosed in the relevant material.

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