This is part 4 of our 4-part series on investing.

Our goal is to provide an experience to every client that makes you feel like you are our only client. We are your financial advisor and personal fiduciary. We take our role and responsibility very seriously. We have built an investment platform that is adaptable, scalable, suitable, and most importantly, a conduit for providing each and every client the unique attention their financial plan requires. The investment platform helps us fulfill a core belief of treating each client equally and fairly regardless of account size or net worth. We call it DRAAMS (Dynamic Risk Asset Allocation Management Sleeves.)

As we discussed in the first 3 parts of this series, there is a possibility we may be entering a period which requires investing differently than we have since 1982.

Part 1 of our series reviewed the secular bear market of 1965 to 1981: a period when the Dow Jones Industrial Average’s price was lower after 16 years. It is hard for most of us to imagine experiencing a similar period of performance in the US, but it would be irresponsible as your advocate to not consider the possibility. Could we be entering a sustained period when active, tactical strategies outperform index/passive investments?  Far different than 1982 to the present, when it was simple; buy the market on the “dips” and eventually it always goes higher….. Click here to review the article. 

Part 2 of our series discussed the role of declining interest rates and leverage as contributors to the remarkable performance of stocks from 1982 to the present. In April 1982 the 10-year US Treasury paid an investor 14.41% to maturity. In July 2019 the same bond’s yield to maturity dipped below 2.00%; creating an environment where interest rates cannot duplicate a similar decline and benefit to the investment returns of stocks and bonds. Click here to review the article. 

Part 3 provided a current example of a major market index that has not recovered to its 1990 historic high: the Nikkei 225 Index. Granted the Nikkei is not the US stock market, but it is an example of a present day major global equity market that has not made a new high in 29 years in an environment of predominantly low-interest rates as seen in the US today. In other words, investors who bought and held the index in 1990 have not recovered their original investment. Click here to review the article. 

An investment management platform in today’s complex and information overload world needs to be adaptable and responsive,  while also having the flexibility to migrate between passive and active strategies or a blend of both efficiently. DRAAMS is GFP’s solution. Our Dynamic Risk Asset Allocation Management Sleeves allow you to have a flexible and dynamic approach to portfolio risk management. There are times we will shift the weighting amongst our sleeves to increase or decrease your risk exposure.  When we see opportunity, DRAAMS allows for allocation towards areas that may present investment opportunities. In contrast, when we see more potential risk we can allocate more towards a defensive blend of investments. Each client’s portfolio is constructed using a combination of the 4 investment sleeves: Equity, Tactical, Alternative, and Fixed Income (Bonds). As our client base grows, DRAAMS provides a scalable investment platform for portfolio construction. It gives GFP the ability to maintain proper oversight of your investments, while allowing for targeted adjustments to each sleeve or broader adjustments to all client portfolios. The sleeves have been constructed using investments priced daily and liquid daily, allowing for any portfolio decisions to be implemented within 24 hours. Finally, the DRAAMS sleeve approach ensures all client accounts receive the same execution, fair treatment and price: a core principle at GFP.  We are committed to you, and always have your best interests in mind.  DRAAMS helps us fulfill this promise as we grow and you enjoy work, your lifestyle, and most importantly your retirement. Click here to learn more about DRAAMS.