Growth

The SSIM asset allocation process differentiates itself from the Sharpe model in its use of projected estimated earnings rather than historical returns to determine the expected return for stocks. As the price of the stock market changes and earnings estimates change with the economic cycle, the expected return of the stock market also changes. In other words, given the current price of the stock market as measured by the Standard and Poor’s 500, what value is the market giving to future earnings of these companies. This expected return of stocks is then compared to the available returns in fixed income and cash equivalent investments. The optimal asset allocation mix is then determined using statistical measures of these markets over the last sixty months. This quantitative process is calculated at least monthly.