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Defense

Successful investing is not just about what you make when markets rise. It’s about what you keep when markets decline.

By far, your best risk-control mechanism is proper portfolio selection – choosing the diversified portfolio that is right for you. That is precisely why we maintain 15 carefully risk-adjusted ETF portfolios, and why portfolio selection based on your needs will be a major focus during your Investment Suitability Interview with Keith – and thereafter should your personal circumstances change.

In addition to this most-important risk-control mechanism – portfolio selection – exclusively at DCM we will also go completely or partially to cash, or take other defensive actions when circumstances warrant.

Recognizing that each risk-adjusted portfolio has a “normal” historical range of volatility (a single standard deviation), at DCM we may take additional defensive action on your behalf when, in our opinion:

  1. It is more likely than not that your portfolio will decline outside of a single standard deviation of volatility; AND
  2. It is more likely than not that your portfolio will not recover to within its historical single-standard-deviation range within 90 days.

Our additional defensive measures may include:

  1. Taking one or more individual ETFs to cash;
  2. Taking one or more of the asset classes in your portfolio to cash;
  3. Moving all clients within one portfolio to a historically-less-volatile portfolio; or
  4. Going entirely to cash.

But defense is a two-part decision: when to get out and when to get back in. We apply objective, ongoing diagnostics to make that decision.