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
The End of the Everything Bubble
What a difference a year makes. But I don’t need to tell you this. Anyone who’s gone through the last few years knows this to be true. Since, 2018 we’ve seen our share of whipsaw action in financial markets—from Christmas Eve stock market collapse in 2018, to Covid crash in 2020 followed by the Covid market explosion in the second half of 2020, to the meme stock insanity of 2021, and finally the bear market of 2022.
First Half of the Year in Review
Last week we closed the door on the first half of 2022, and from a market perspective the end couldn’t come soon enough. Here is a rundown of the performance of major assets:
S&P 500 -19.45%
Don’t Fight the Fed, But That Goes Both Ways
Among stock market analysts, opinion is becoming nearly unanimous that the market has not yet found a bottom. Since the S&P 500 began to decline at the beginning of the year we have seen four substantial bounces, averaging 9%, the most recent one being the rally from 5/12-6/2. Each of these bounces have resulted in the S&P 500 revisiting its prior low or making new lows. This price action is frequently referred to as a bear market rally.
The Sell-Off Continues
US equity indices, as of 10am, seem nearly certain to log another down week. Absent a dramatic turnaround this afternoon, this down week will mark the 7th consecutive losing week for the large-cap index. Year-to-date the S&P 500 now sits nearly 18.5% below its all-time closing high set on January 3rd of this year. The tech-heavy Nasdaq 100 and the small-cap Russell 2000 are both down roughly 30% from their all-time highs. In the indexed equity space, no place has been safe this year.
