The passive/strategic asset allocation keeps a fixed asset allocation. This means that the strategy will keep the asset allocation (e.g., the proportion of the investment that is stocks, bonds, cash and cash equivalents, etc.) the same regardless of the actual market environment. An approach that does not adapt to its environment would have suffered between January 1st, 1966 and March 1st, 2000. From January 1st, 1966 through August 1st, 1982 cash invested in 90 day Treasury Bills performed twice as well as stocks. However, from August 1st, 1982 through March 1st, 2000 the value of stocks rose 18.30%* per year whereas the value of cash rose only 6.79%* per year. In these 18 years, an investment made on August 1st, 1982 in the stock market would have grown to be over six times greater than an equal investment in cash. Our adaptive asset management approach takes into account these changing market environments and modifies your account portfolio to take advantage of the new environments and help you optimize your gains.
* All return calculations were done by WEGENER, LLC. We did not adjust our calculations for taxes or any other potential cost.
Copyright© 2003 WEGENER, LLC. Brief quotations including attribution and a direct link to this site (www.wegenerllc.com) are authorized. All other rights reserved. Extensive or unattributed reproduction of text or research findings are violations of copyright law.