Managing money in the moment: in price, there is truth

All day, every day, investors buy and sell stocks and bonds based largely on their views of traditional macro and micro investment metrics, e.g., interest rates, inflation, earnings, employment, etc., as well as their own short- and long-term investment goals. When buyers and sellers agree on a price, they have reached a place of harmony — of truth – a place that, however fleeting it might be, reflects the value that buyers are willing to pay for a security, and by extension, a market in that moment. Those prices continually change, with those changes forming identifiable patterns. We use a process called “technical analysis” that tracks and applies rigorous real-time statistical analysis to price movements and patterns, helping us measure potential risk and reward and identify favorable entry and exit points when buying and selling securities.

When our analysis identifies an imbalance between buyers and sellers that is creating disequilibrium in price, we seek to add value to our portfolios by:

  • establishing new or adding to existing positions at attractive prices;
  • reducing or eliminating existing positions at attractive prices;
  • or simply avoiding riskier areas of the markets altogether.

We continue this process on a regular basis, as every moment brings a new relationship between buyers and sellers that might provide new opportunities for our portfolios.

Building moments into portfolios: it’s all about the mix

After identifying the securities that are suitable for client portfolios, we blend those securities into portfolios that meet each client’s respective goals and comfort level. We do this based on judgment-free discussions with every client regarding their short- and long-term investment goals. This is a collaborative, ongoing and critical part of the process, as we must always be aware of whether client goals harmonize with investment reality.

The result is a portfolio that blends different categories of stocks and bonds into a diversified portfolio with a fully informed client who has realistic expectations regarding their investment portfolio.