Our Philosophy
Our investment philosophy focuses on our belief about how financial markets really work. We feel the markets are self-contained beasts simply doing what they want, not what the outside world says they should do.
Most financial advisors trade their clients’ assets based on fundamental concerns, such as:
- things happening in the world outside the markets
- geopolitical events
- business news and forecasts
- World Bank/IMF activity
- fiscal policy
- federal policy
- government reports
- investor-sentiment polls
These concerns are never reflected in the markets for more than a day or two. If they are reflected in the markets, the follow-up questions of “Starting when?” and “For how long?” can’t be answered.
Another practice of some financial advisors is over-allocating client assets to academic-based methods. Primary among those is the heavy allocation of monies to certain asset classes, based purely on the historical performance of those asset classes (known as “strategic” allocations). This practice is done even when those asset classes haven’t currently performed well enough to earn their way into a client’s portfolio at all.
At Colorado Financial Solutions, Inc., we do things differently. Using the real-time analyses of mathematical data from inside the markets, we are able to base our investment decisions on the probabilities that certain market scenarios either will or won’t unfold. By practicing this method, we can actually quantify a one-to-one cause and effect on investments!
Our investment/management techniques analyze market trends spanning over weeks, months, and years. Our primary focus on those trends is momentum. This helps us identify not only the big market trends, but the relative-strength asset classes as well. We use the winners in classes such as stocks, bonds, commodities, etc. to populate our clients’ portfolios.
We strive to have the most consistent and reliable investment advice for our clients. We don’t try to “anticipate” trends in the markets or individual asset classes as those sorts of guesses are frequently misleading. Instead, we carefully monitor the trends to see what is actually happening with your investments. By utilizing mathematical rule-sets for entering and exiting markets and assets, we are able to provide a more successful portfolio for our clients. This has the additional benefit of avoiding the mental anguish associated with less reliable methods of trading.
In summary, we help our clients succeed in their financial planning by focusing on what is happening in the markets in real time, not using forecasts, fundamental-based investing, or academic theories on investing. We use proven methods to help your portfolio grow.