The classic 60-40 portfolio has long been a staple of investors seeking a presumed balanced approach to investing. Traditionally, the 60% has been constructed using the U.S. Total market or S&P 500 and the 40% has been constructed using intermediate U.S. Treasuries.
The Volatility-Resistant model is a new twist on this classic strategy. Rather than hold the entire stock market, the strategy takes advantage of both U.S. style rotation as well as international stocks. In similar fashion, the strategy selects among the best fixed-income opportunities by rotating among treasuries and high yield bonds.
The strategy uses our Downside Risk Protector© in effort to protect capital during periods of market weakness. The result is a strategy that has historically provided investors with a significantly lower drawdown and a higher risk-adjusted return making it a suitable strategy for a wide variety of investor needs.