The whole portfolio theory seeks to address investor economic and behavioral needs.
The portfolio attempts to:
- Have market exposure
- Mitigate risk of extreme losses
1Adaptive Fixed Income is herein defined as Strategies that contain asset classes that may go to cash equivalents during certain market environments.
2Risk-Managed Strategies refers to portfolios that may move to cash in order to manage risk.
3Strategies Containing Always Invested Stocks refers to portfolios whose equity portion is continuously invested in the stock market.