Ditch the index. Leave it behind. Indices are arbitrary, they have their path to follow you have yours. Let’s face it, you know where you want to go, the index doesn’t. Calibrated thinking places your goals as your index—your barometer. By charting your path, balancing your investment risk, and untethering yourself from an arbitrary index, you will have bought yourself freedom: freedom to turn off the noise.
CALIBRATE YOUR PLAN
At Calibrate Wealth, we start with Why — the why you do this in the first place. Restated: we calibrate your plan by starting at the end and looking back to where you are. Next, we help you define your path. We make your path safe and direct; we continually review, readjust, and repeat.
CALIBRATE YOUR INVESTMENTS
At Calibrate, we put the focus on things we can control. We start with your input, risk. And risk is, after all, what you add when you invest. In contrast, returns are the hoped-for output from your investment. Calibrated investing begins with the risk input and works forward. We balance risk between asset classes and between market outcomes. We accept the future as being uncertain, and build investment strategies with that understanding. We build your strategy designed to accommodate all types of market climates, not just one for the “good times.”
Risk Parity is an enhanced asset allocation strategy aimed to increase risk-adjusted returns. Risk Parity aims to diversify returns across a wide range of market environments.
Our Momentum based strategies are designed to strategically adapt to market environments and capture returns based upon current trends and market direction. This is a model-based approach to active portfolio management.
Calibrate Tactical Risk Parity
Calibrate Tactical Risk Parity combines the benefits of momentum and Risk Parity into one cohesive portfolio. This portfolio adapts to economic conditions and aims to optimally diversify the risks and returns across all invested asset classes.
Our innovative investment strategies are available for individuals, foundations/endowments, family offices and institutional investors in separately managed accounts.
After a careful review of your personal risk tolerance and financial goals we tailor fit our strategies to your unique needs. We have sustainable income strategies for retirees using. We generally work with clients with at least $250k in investable assets.
The S&P 500 fell slightly this week, closing down roughly 1.5%. The small cap Russell 2000 index continued to be the outperformer, adding another 1.42%. Since December 31, the small cap index has risen nearly 7.5%. Large cap stocks have been dragged down by the big tech names which have carried the index for the better part of two years. Amazon, Netflix, Apple, Facebook, and Google all fell in excess of 3% this week.
The first week of 2021 picked up much where 2020 left off, with the small cap Russell 2000 strongly outperforming both the S&P 500 and the Nasdaq 100. It seems as if the more speculative the investment the more outsized the returns are relative to other similar investments. For example, this week saw strong performance across the board from investments which benefit from higher inflation. Oil futures rose over 7%, soybean futures gained over 5%, and copper futures gained over 4.25%.
Stock indices were up again this week, with small cap and technology stocks leading the way. The large-cap S&P 500 index was up 1.2%, bringing its December gain to 2.4%. More impressive has been the return of the Russell 2000 small-cap index. IWM, the ETF which tracks the performance of the Russell 2000, was up 2.63% this week and is now up over 7.8% for the month. This month’s gains for the Russell now gives it a higher year to date return than the S&P 500, a prospect which seemed preposterous just a couple months ago.