Minimizing Downside Investment Risk
The Goal:
Minimize Downside Investment Risk
Chapoquoit Dynamic Portfolios believes the following as the basis for our investment process:
- Past returns cannot profitably predict future performance.
- Using top down market and macroeconomic analysis to control monthly allocations to ETFs is a very effective investment approach.
- Minimizing downside risk over a market cycle of 6-8 years, while targeting a selected return, generates more favorable investment results compared to a buy-and-hold approach. This tends to reduce portfolio maximum drawdown and standard deviation resulting in a lower risk portfolio.
