Historically, equity investments have offered investors the best opportunity to achieve long-term portfolio growth. However, they carry significant risk and are vulnerable to debilitating portfolio losses when exogenous shocks to the market occur. Toews’ goal is to help protect core assets from extreme losses without sacrificing participation in rising markets investors rely on to achieve long-term, above-inflation growth .
By exiting growth stocks into defensive equities when prices decline, we aim to produce outperformance with less risk and diminished whipsaw risk.
Target Allocation When Fully Invested
Defensive Alpha – Equity
Defensive Alpha – Balanced