Availability and Adaptability for You and Your Portfolio

Someone once said, “the best ability is availability.” While we agree wholeheartedly with this statement, we would contend that an equally important ability is that of adaptability. This is really where the rubber hits the road in terms of our journey through life, as well as our journey through the financial markets. Using both of these abilities is of the utmost importance. When we look to manage risk for our clients, not only do we need to be available to do so, we also need to have a capability of adaptability for an ever-changing market. Our Adaptiv Investment Management System’s main objective is to do just that, in an effective and efficient manner.  

When we look back at the start of 2022, we are reminded that adaptability is not just a fancy buzzword. It remains a disciplined approach we must follow each and every day for our clients. One of the key areas where market participants needed the ability to adapt during the first quarter of this year was the Treasury bond market (and most bonds across the credit universe), which had one of its biggest corrections in the past century. Equally important, adapting away from certain equities would have also benefited a portfolio as many domestic and foreign names struggled mightily and continue to do so. A classic 60/40 portfolio (60% stocks / 40% bonds) paired with a buy and hold approach (zero adaptability) would have seen some decent corrections to start the year. But we don't have to buy and hold. We don’t have to “diversify” into corrective areas of the market. We don’t have to own bonds because the “financial industry” says so. Rather, we can adapt to each unique market environment as it presents itself. Accordingly, we present a question to you as we venture into the remainder of 2022: Do you think the market will do well? Or do you think it will do poorly? Or are you comfortable acknowledging we must adapt to good and bad markets because that is what is required for an available retirement? 

During our April 2022 Lunch & Learn event, our Adaptiv Investment Management Team answered the following important questions:

1. Mid-term election years are notoriously volatile. Will 2022 be the same?
2. What is a stealth bear market?
3. Is there something wrong with the 60/40 portfolio?
4. What major asset class could surprise investors this year?
5. How do we find opportunities and protect gains in this market environment?

We hope you enjoy the Adaptiv team's Q1 2022 recap presentation – Quarterly Market Insights, “Availability and Adaptability for Your Portfolio.” All relevant links referenced in the presentation as well as a presentation copy are available below.

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This presentation is for informational and educational purposes only and should not be used to make investment decisions. All images are for illustrative purposes only. Full disclaimers, disclosures, and terms of use can be found here. Clients of Client First Investment Management, LLC may maintain positions in the securities discussed in this presentation. Client First Investment Management, LLC is a SEC registered investment advisor.