A brief update on our strategies in light of recent equity market volatility:
- Defensive position - At market close Friday August 21, in response to the increase in volatility, our indicator switched to defensive positioning. As a result, on Monday August 24, we positioned our Pilot accounts to bias toward treasuries, and we positioned our Mariner tactical hedged equity strategy to market neutral.
- Opportunity - While we don't like to see the investing community suffer losses, these are the times a purely systematic approach that takes the emotion out of the investment decision can outperform.
- Where is the bottom? - Because our system takes a daily view of the market and makes a prediction of the risk of investing for the following day, we don't focus on calling a bottom. When our daily indicator calls for more offensive positioning our system will adjust accordingly.
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Please note that the excerpts from client notes and market commentaries speak only as of the date that they were originally distributed. We do not undertake to update them, and accordingly they may have become inaccurate with the passage of time. If you have questions about any of our materials we invite you to contact us.