Our Process

Asset Management Approach-Core and Satellite Portfolios

Most investors may find that a particular investment strategy can work well over time--and yet, during periods of volatility, you might be able take advantage of unique opportunities in the market by following an approach that complements--but doesn't replace your primary strategy.

Coletta Core Strategy--The All Season's Strategy

The last 13 years have been difficult for investors and for many a painful investment experience.  It has indeed been a treacherous time to navigate with two vicious 50%+ stock market declines since 2000.  In three highly recommended books Investing In the Second Lost Decade, Endgame – the End of the Debt Supercycle  and  Probable Outcomes – Secular Stock Market Insights, the authors tell us to be prepared for more of these volatile stock market swings that could last yet another decade.  In order to not only survive but to even prosper in this deeply cyclical future, investors need to have two distinct game plans; one for defense to protect assets in difficult times, and one for offense to grow wealth during favorable conditions.

Unless one is well-equipped with deep knowledge of the relationships between economics, business, investor psychology and financial markets and has the necessary time, investment decisions are best left to professional money managers.  Chances of long term investment success are increased if professional, seasoned teams are employed to help achieve or maintain financial security.

A low risk “all-season” strategy should be the base of any conservative investors investment pyramid.  The definition of “all-season” means having both a disciplined strategy for navigating difficult bear markets and one for growing wealth during good markets.  The next related issue is what to plant and when to harvest various assets for optimal risk and reward results.  This process is called “dynamic asset allocation”.

Long term success can be improved with effective asset allocation through the inevitable ups and downs in the economy and financial markets.  In other words, changing the portfolio mix in a proactive manner between bonds, equities, inflation-sensitive investments and cash as the world changes is vital to successful investment results.

Investors looking ahead to the next challenging decade should seek to employ professional money managers with demonstrated proven success for their core strategy. Selecting managers with disciplines that identify favorable and unfavorable market conditions and employ rational asset allocation changes when business conditions change increase the odds of positive results. There are no guarantees in the financial world, but a thoughtful well-planned adaptive investment approach will go a long way toward peace of mind and investment success.

We have teamed up with PringTurner Capital Group to act as our sub advisor for "The All Season's Strategy" in our Conservative Growth and Income program.   Unlike passively managed accounts provided by typical advisors, PringTurner makes dynamic adjustments to our client's portfolios as the economic and financial seasons change.   Martin Pring, the Chairman and Investment Strategist at Pring Turner in collaboration with Dow Jones Indexes co-developed the Dow Jones U.S. Business Cycle Index in 2012 which was based on his "Six-Stage" business cycle research.  Martin has written more than 20 books including "The All Season Investor Successful Strategies for Every Stage in the Business Cycle."  Martin has been honored with numerous lifetime achievement awards recognizing his career-long finance and investment research contributions.

Coletta Satellite Portfolios...A tactical approach focused on generating absolute returns

As its name suggests, your satellite portfolio is a supplement to your core portfolio; however, that does not mean it is not important in helping you reach your long term goals.  A satellite portfolio gives you the opportunity to make short-term investment decisions based on fundamental, technical, and quantitative analysis.  Your satellite portfolio is focused on aggressive growth strategies.  We can customize a portfolio for you or you may choose from our model portfolios if you prefer to focus on a particular investing style (i.e. Large cap, small cap, etc).   This approach complements-but doesn't replace-your core strategy.

 

 

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