Philosophy & Methodology

The 80/20 Rule applied to Investing

In Bear Markets, timing and asset allocation are the keys to success. Like Nobel laureates, Sharp & Markowitz, we attribute 80-90% of investment returns to asset allocation. Sharp and Markowitz won the Nobel prize in part for applying the Pareto Principle to Investing. The Pareto Principle, named after the 19th Century Italian Economist, Wilfredo Pareto, states that 80% of outcomes result from 20% of efforts in every endeavor. Likewise, in investing, 80% of positive returns typically derive from just 20% of the portfolio. We attempt to stack the odds in your favor by doubling or tripling that crucial 20% which yield the highest returns

Timing and allocation decisions are largely technically-derived from original Elliott Wave analysis, consistent with the Austrian Trade Theory and often supported by timing cycles.

In a Bear Market, the rules of investing are virtually turned up-side-down. Buy & Hold, stock picking, are global diversification are now strategies which guarantee catastrophic losses and downward economic mobility.Isn't it about time you adopted a winning strategy?