Risk Parity
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.
CALIBRATE YOUR THINKING
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.”
Investment Strategies
Momentum
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.
Investment Management
Our innovative investment strategies are available for individuals, foundations/endowments, family offices and institutional investors in separately managed accounts.
Financial Planning
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.
Blog
Inflation on the Horizon?
Just a short note today. This week we saw bond prices tumble as yields continued to push higher, with the benchmark 10 Year US Treasury yield closing at 1.34%. Commodity prices continued to extend their recent gains. Copper prices gained over 7% and WTI Crude gained 5% by mid-week before giving back those gains over the past two sessions. We may be seeing the beginnings of inflationary pressure start to emerge in the market, which would have negative implications for both bond prices, and potentially causing some tremors in the stock market.
GameStop Week: The Rewind Fee
It was a bad week to be a Wall Street Bets Reddit follower to say the least. As the saying goes, “A fool and his money are easily separated,” and money certainly gushed from GameStop long shareholders like water from a hose. After closing last Friday at $312/share, the price of GME stock fell to below $50 by the close of trading Thursday. While the massive squeeze in the “junk” stocks last week sent the broader market indices tumbling downward, the reversal of fortune for the most shorted stocks benefited the overall market greatly.
The GameStop Trade and the So-Called Reddit Army: Why it Matters
While the financial news this week was all a buzz with stories about GameStop and the other dead or decaying companies which saw their stocks soar to meteoric levels, few, if any, of these stories cared to cover the economic impact and financial repercussions caused by a complete misallocation of capital by a social media herd on Reddit.
Market Update
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.
