Adaptive Asset Management versus 100% Stock Allocation

A crucial aspect of our approach is that we include all asset classes (e.g., stocks, bonds, cash and cash equivalents), rather than limit investments to only stocks. An approach that relies solely on stocks has historically suffered for prolonged periods. For example, during January 1st, 1966 through August 1st, 1982 the value of stocks, as measured by the S&P 500, rose only 4.1%* per year whereas the value of cash invested in 90 day Treasury Bills rose 7.7%* per year. In these 16 years, an investment made on January 1st, 1966 in cash (e.g., Treasury Bills) would have grown to be twice as large as an equal investment in the stock market. Our approach prides itself on constant vigilance, takes changes like these into account and adjusts the portfolio to include the asset classes in which the current market environments are most favorable.

* All return calculations were done by WEGENER, LLC. We did not adjust our calculations for taxes or any other potential cost.

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