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.
As I prepared to write today’s letter the U2 lyric, which I used as the title for this paper, kept running through my head. Sometimes writing a weekly market note can be challenging, especially when not much is going on in the markets. Sure, yesterday we got the monthly Consumer Price Index report which showed a scorching 5% year over year increase in inflation, a number we haven’t seen since 2007. But the market seemed to take that pretty much in stride, with the S&P 500 hitting all-time highs.
While the general market seemed dressed in its summer cruise wear, the amped-up meme momentum stocks continued into overdrive. Joining AMC this week at the glutton’s banquet were some high flying names from month’s past. Blackberry was up 40%. Nikola Motors was up 12.6%, Workhorse was up 38.4%. Each of these have been previously loved stocks that had recently fallen out of favor, but now, for whatever reason, the love affair has been rekindled. It’s like everyone one on Reddit wants to relive last summer.
It was another lather, rinse, and repeat week in the markets. The S&P 500 finished up 1.37%, 10-year US Treasury notes rose 0.3%, gold gained 1.17%, and the Nasdaq 100 added 2.23%. Notably, Bitcoin has continued to struggle, falling midweek to $33,000, or roughly 50% below its all time high. Similarly, Dogecoin is currently 57% below its all time high.
One of the most common questions that I get asked is, “Where do you think the stock market is going?” While I understand it is human nature’s desperate need for answers and clarity during periods of heightened uncertainty, just look at the geo-politics in the 1930’s, but unfortunately answers are difficult to provide. However, I would posit that the question most important, and least asked by most investors is, “Where are interest rates headed?”