S&P 500 Sputters After Four Week Boom | FormulaFolios

5-Minute Market Update // August 01, 2016 I am happy to present this week’s market commentary from FormulaFolio Investments. The goal is to give our clients and friends a simple way to see everything they need to know about the financial markets on a weekly basis, in 5 minutes or less.  After all, finances should… […]

5 Minute Market Update

April 25 5 Minute Market Update

5-Minute Market Update // April 25, 2016 Posted April 25, 2016 I am happy to present this week’s market commentary from FormulaFolio Investments. The goal is to give our clients and friends a simple way to see everything they need to know about the financial markets on a weekly basis, in 5 minutes or less. […]

5 Minute Market Commentary – November 30, 2015

FormulaFolio's Chief Investment Strategist Jason Wenk provides an update on the market

5-Minute Market Commentary // November 30, 2015 Posted December 1, 2015 I am happy to present this week’s market commentary from FormulaFolio Investments. The goal is to give our clients and friends a simple way to see everything they need to know about the financial markets on a weekly basis, in 5 minutes or less. […]

“DaVinci Wealth Radio – December 5 Airdate. Smart. Secure. Simple.”
by Darren Vilardo

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DaVinci Wealth Radio – December 5 Airdate. Smart. Secure. Simple.

In this week’s edition of DaVinci Wealth Radio, Darren discusses the 3 steps necessary to create a world-class, top-tier asset management approach.

Step 1.

Build a historically proven, emotion free asset allocation focused portfolio.  Using proven top-ranked institutional money managers who exclusively utilize a formula-based approach to asset management.  That is much different than hiring money managers based on past returns that are impossible to quantify, difficult to duplicate and could be based entirely on luck.  This is the same way University endowments, Pension Plans, and Charitable Funds invest.

It is a tactical approach, that is to say a formula based process designed to only create transactions when appropriate.

We seek to hold investments for prolonged periods of time when markets are healthy and gains are most likely.  However when market cycles change and its most prudent to move to safe havens, our models do not hesitate to proactively allocate funds away from harm.  The goal is a portfolio that is consistent, able to produce long term results in line with client expectations while avoiding large scale losses, that often make many years to recover from.

Step 2.

Create Rules to monitor and Protect.  We use AssetLock.  This proprietary technology allows us to have a system to not only monitor portfolios on a daily basis, but to take action on a predetermined exit threshold.  This is the predetermined level at which we will not incur any more losses.  Think of it like an airbag for the portfolio.  It serves two purposes. First, it allows us to determine in times of calm and stability, how much downside risk one is willing to accept.  It removes the emotion from the decision.  No more decisions in the heat of battle so to speak, when markets are volatile and thoughts and rationality are skewed by emotions of fear and anxiety.  Secondly, it is an automated exit strategy, so that if we get the portfolio management wrong, despite our best effort, and strong historical track record, if we are wrong, you are much likely to suffer a catastrophic loss like many portfolios experience in 2008.

Step 3.

Always know what you have and how you’re doing.

Instant and constant communication allows you to know exactly how much you have, and more importantly, ho much of that is at risk.  AssetLock uses state of the art technology to keep you informed.  24/7 access to our online platforms as well as daily notifications via email and text message keep you up to date on the state of your portfolio.

For More information about AssetLock and FormulaFolio’s, simply click the button below.

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