Bogue Asset Management’s Quarterly Investment Letter is available for review, My commentary examines the economic "tug of war" being reflected in the stock market, with improving economic and company fundamentals on the one side, and concerns about debt-related stress points and the longer-term strength of the economic recovery on the other. [See More]
Bernie Madoff’s clients didn't see his Ponzi scheme coming. Could they have? Let's look at four safety tips that would have prevented this from happening and the safeguards that Bogue Asset Management LLC provides in its client relationships: [See More]
How your advisor is compensated does matter. Lately there has been a blurring of the lines with the use of the term “Fee-Based” to describe how one is compensated. I’ll tell you why Fee-Based is not Fee-Only and the difference can be substantial: [See More]
Shopping around for a financial planner? When you are in the process of looking for a financial planner, you should have a consistent interview process to determine which planner is the best for your needs. These are the seven questions that I suggest that you should ask: [See More]
Alternative Investment Strategies
Bogue Asset Management LLC employs the use of Alternative Strategies within its portfolio composition. The objective of Alternative Strategies is to offer an approach to lowering the risk profile of portfolio construction while not sacrificing the growth potential of the portfolio in comparison to using bonds and/or cash.
The key characteristics of these strategies are:
- The strategy is employed using a combination of open ended mutual funds and exchange traded funds with wide and varying approaches and strategies
- Many of these strategies tend to act differently in comparison to conventional stocks and bond strategies in most market environments.
- This can be a “stand alone” strategy or embedded within a conventional portfolio consisting of stocks, bonds and cash
- The strategy can be designed to be aggressive, moderate or conservative depending on the clients needs
- Can employ portfolio protection strategies during times of market crisis
By implementing these investment management strategies, it can offer an additional layer of diversification to any portfolio. In particular, these portfolios may offer enhanced benefits to those in the retirement stage of their lives as several of the sub-components of the Alternative Strategies tend to hold up well during times of market turmoil.
For a retiree’s investment strategy, one of the primary risks is sequence risk, or being forced to sell assets while they are trading at market lows. Alternative Strategies can provide additional liquidation options as bonds don’t always provide diversification protection when stocks are at market lows while allowing for more long term growth potential than conventional bonds can.