In today’s volatile market "Buy and Hold" can lead to substantial losses and many missed opportunities. We see this frequently with large banks as well as with large brand name brokerage companies. Why pay an advisor a fee to manage a portfolio when there is very little management occurring?
So What is a Managed Portfolio?
A truly managed portfolio uses tactical money management. With tactical management, the consumer gives discretionary control to a money manager. With no transaction costs to the consumer, the money manager has free reign to adjust the portfolio as needed to capture profits in up or down markets.
The money manager operates in a fiduciary capacity, which makes them legally bound to work on the side of the consumer. Using algorithmic trading, the money manager can establish stop/loss protocols to protect against a major stock market correction. The portfolio remains 100% liquid so the consumer can make a changes any time with no penalties.
Would you like to learn more about managed portfolios? Contact our office today at (480) 428-8005 for a no-cost consultation.
Written by Marc Montini, a series 65 licensed fiduciary and Investment Advisor Representative.