Conventional wisdom urges investors to buy and hold, stay invested and not attempt to time the market. Otherwise, investors can risk missing out on the market’s top-performing days.
However, one of the keys to better long-term performance is to avoid 100% participation in bad markets. When certain market dynamics take place, we automatically dial back your exposure, reducing your portfolio’s volatility. As those same dynamics reverse themselves, the portion of stocks we sold goes back into the market. The compounding effect of this strategy can boost long-term portfolio performance.