At Kiker Wealth Management, one of the most unique values we bring to the table is our focus upon an adaptive and risk managed investment process. Because risk is everywhere, and the global picture is changing rapidly, we take a Tactical Asset Management approach to investing. Here is what we mean:
- The Investment Strategy you choose is one of the most important decisions you will make: Warren Buffet once stated “An idiot with a plan can beat a genius without a plan”. Unfortunately, most investors and advisors do not have a well-considered investment strategy of which the unique set of strengths and weaknesses are recognized and anticipated. The resulting fruit of not having a well-considered approach yields investors who are perpetually chasing returns and moving into an investment strategy based upon the most recent returns. We call them “performance chasers”. One thing is certain, no investment approach will navigate every environment well. The types of situations an investor in the accumulation phase of investing love to see, are the types of situations those in the distribution phase of the investing life cycle should fear. We will help you choose the investment strategy that fits your situation, goals, and desires.
- Risk and Reward Go Hand-In-Hand with Investments: Because risk is a natural part of investing, our investment strategy is designed to measure, manage and help mitigate risk. To ascertain the overall risk in the market, we use a method of technical analysis that measures the supply and demand relationship for more than 40 broad sectors of the market. Further analysis enables us to determine which asset classes we believe will present the greatest momentum and growth potential. We believe risk and volatility are NOT the same thing. We also believe there is a time to play defense as well as a time to play offense.
- Markets Change and We Need to Adapt: A good investment strategy adapts to economic and market opportunities to help keep your portfolio moving forward. We do not have a crystal ball to tell us how the markets will perform from day to day, but we do have an educated knowledge of underlying trends that drive the returns of stocks, bonds, currencies and commodities. We are not trying to “time the market.” We take considered action when trends shift in order to take advantage of changing economic and market conditions. Read more about adapting to market conditions.
- Making Money is Important, but Protecting Money is Essential: When risk levels are low, we want to be in a wealth-accumulation mode to capture as much of the market’s upside as possible. However, there will inevitably be times when the market goes down or risk is high and there is substantial downside risk if the markets falter. When our tools throw off enough warning signs, we move into a wealth preservation mode and seek to avoid severe drops and help safeguard your hard-earned savings.
- Buy-and-Hold Is Not Enough for Most Investors: The typical American investor has only 15-30 years of accumulating before they will need to access their money – those who are retired have a limited window for recovery – making the traditional buy-and-hold philosophy, which was based on 80-100 year cycles, insufficient. We believe investors need to move away from autopilot and be more active with their portfolio in order to take advantage of market ups and downs. The distribution phase of an investor’s life cycle is very different from the accumulation phase.
- Emotion Is the Enemy of Investing: Often the most detrimental investment decisions are made based on strong emotional reactions rather than informed reason. We understand that it is human-nature for investors to experience a range of emotions. However, we strive to help you maintain perspective and make educated decisions based on your long-term financial goals. Investing involves discipline and the investors who have a well-considered plan have a greater chance of staying calm when uncertainty reigns.
- Stick to Your Strategy and Avoid Chasing Returns: The average portfolio underperforms because investors single-mindedly chase performance, often causing them to buy too high. Stated another way, investors end up buying an investment strategy at the peak of its strengths, typically just in time to experience the weaknesses of a particular approach. This can make a frustrated investor. We work with you to design an investment strategy to meet your unique goals and then we help you stick to it – making tactical and strategic adjustments based on informed analysis and market considerations. Helping you to understand the strengths and weaknesses of your particular strategy in an effort to increase the likelihood you will stay disciplined and operating on a plan.
NOTE: It is important to recognize that no strategy assures success or protects against loss. Past performance is absolutely worthless at projecting future returns. The future is unknown and unknowable.