Portfolios adjusted for each phase of the market cycleThe world changes and your portfolio should change to reflect that.
Traditional models work well a lot of the time. But there are decade long periods (and sometimes single years), where they fail the individual investor.
Traditional thinking says to wait patiently or to absorb these losses because over the long run the market rises and it all works out. But this conventional wisdom offers little relief when you don’t have decades to recoup significant losses.
Avalon was one of the first investment firms to create a process for scenario-based asset allocation.
Using this process, the firm taps an investment universe to include assets designed to perform well even when traditional assets do not. We also designed "Ada" (the Avalon Dynamic Allocation process) so that we could position investment portfolios to favor investments that perform well in their respective economic environments.
Our dynamic approach reflects the fact that each phase of the market cycle has favored a different asset class.
Click below to see historical examples
Traditional portfolio diversification, by contrast, allocates 60% stocks and 40% bonds.
Bonds are generally the best mitigator of stock volatility because they often outperform for the same reasons stocks underperform.
And yet many environments can cause both stocks and bonds to perform poorly, sinking a conventional portfolio. We appear to be facing one of those environments now.
How do you reach target returns when both stocks and bonds are overvalued? Consistency of returns requires a more thoughtful approach, one fueled by an historical perspective and driven by dynamism.
Ada uses a strategic mix of ETFs and weekly rebalancing based on historically verified inputs. This tactical approach selects strong relative asset trends and avoids weak ones. We use Ada to help mitigate portfolio risk by shifting exposure in response to investor behavior.
Here’s what Ada includes in her calculations:
Historical + Current Market & Economic Conditions
& What You Pay
Your Risk Level &
See how we work with you for more details.
power of Ada
We apply her insights to your goals.
Ada is a powerful engine, but she needs to be driven by experienced investors. We combine more than 140 years of investing experience and a deep understanding of strategic asset allocation to make tactical, data-based decisions.Meet your team
See how Avalon’s approach to wealth management compares:
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