Smart Indexing – a Thermostat & Thermometer

Investment professionals, do you have a consistent, reliable, go-to process for reading the market and adjusting client portfolios to current changes and trends? 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 … More Smart Indexing – a Thermostat & Thermometer

What is Long Term?

What is the long term when it comes to investing? It seems everyone has their own idea about this. For instance if you caught this article  today it would appear that 9 years is long enough. The problem with assumptions like this, are that it ignores the very real impact that vicious market cycles have on … More What is Long Term?

A Quantitative Approach to Tactical Asset Allocation

INVESTING IN RISKY ASSETS “…2008 was a devastating year for buy and hold investors. The classic barometer of stocks, the S&P 500 Index, declined 36.77%. The normal benefits of diversification disappeared as many non-correlated asset classes experienced large declines simultaneously. Commodities, REITs, and foreign stock indices all suffered losses over 35%. “..The unfortunate mathematics of … More A Quantitative Approach to Tactical Asset Allocation

Bear Market Problems

Did you know that from 2000 – 2016 the average annual return for the S&P 500  was 4.11%? Stunning right! Why? Because two of the largest bear markets in the last 86 years took place over the past 16. We can all agree that bear markets are hated, hard, and harmful, and I contend that … More Bear Market Problems

Relative Strength Strategies For Investing…

“…The addition of a trend-following parameter to dynamically hedge the portfolio decreases both volatility and drawdown….” Meb Faber https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1585517&rec=1&srcabs=962461&alg=1&pos=1 At SQR, our model portfolios are built on the practice and discipline of trend following and relative strength. Investment professionals, if you are looking to enhance risk adjusted returns – while capturing additional revenue – then … More Relative Strength Strategies For Investing…