Use of Cash

Conventional wisdom among asset managers is to establish a strategic (fixed) asset allocation for a client. In a volatile market, this approach is vastly flawed. Cash is our hiding place during a market storm. Our use of the dynamic asset allocation process allows us to safeguard portfolios in times of distress and move to a larger cash position that typical money managers are accustomed to. There are also times when we simply cannot find stocks that meet our investment criteria. During those periods, we will wait, holding our cash until the odds are more in our favor for a successful investment.