Active Investment Strategy


When you have a 60/40 mix, your debt (bond) investments provide more stability as opposed to inflation protection in a percentage mix. When the decision is made to change the portfolio in a buy and hold strategy, it comes down to just replacing one mutual fund with another one that is performing better. However investments have a life cycle. When you are buying a successful performer, are you buying it at the peak? Could the underperformer cycle back?

We have seen the markets experience highs and lows. When Jim Leone was starting out the Dow Jones was at 750 (in January 2014, it was 16,000) and interest rates were at 18% (now they are around 3%).

An active investment strategy looks for momentum over a period of time. Agape Insurance and Financial Services uses this strategy to reduce your risk by continuing to monitor your investments and report back to you at least on a quarterly basis. Using this strategy, your growth may be less but your losses are typically not as great.

For the older investor who may want to reduce his exposure to equity, this strategy enables him to benefit from the changes in the market to ensure that his retirement funds are not consumed by inflation or by sudden economic downturns.