There is a better way to monitor and control risk exposure in a securities-based investment account.
Sawtelle Financial Managementuses a system of investment management based on the law of Supply and Demand, the most fundamental determiner of stock prices. find out more
SFM does not charge management fees when the account(s) are not profitable, measured since inception of the accounts.
"The sum total of your accounts will not be charged a management fee in any quarter the sum total of your accounts are not profitable, measured from the inception of the agreement."
Please read the SFM Policies, Philosophy, & Procedures for further information about how we conduct business.
The stock market collapse between 2000-2002 opened the eyes of many investors. (But not enough. Net equity mutual fund redemptions amounted to only 3% during this period.) Many found their retirement accounts reduced by over 50%. One major issue that came out of this is that many of these investors were using an Asset Allocation strategy by itself, with no plan, no methodology in place for managing risk. Many believed the Wall Street Mantra of “Buy and Hold.”
We know Asset Allocation works in a bull market, as most everything does. Going forward, will Asset Allocation (a.k.a. Diversification) continue to protect retirement/investment assets in today's market? Will the Efficient Market Theory work in a long term downtrend? We think not. Asset Allocation, as practiced by many, is not as effective a method of monitoring and managing equity risk. Typically, most practitioners of asset allocation do not use a systematic method of getting investor assets to safety during a major market decline.”
Is there a better way to monitor and control risk exposure
in a securities-based investment account?
Yes! Sawtelle Financial Management uses a system of investment management based on the law of Supply and Demand, the most fundamental determiner of stock prices.