Markets and asset classes do not move in tandem. What's hot today may be cold tomorrow. Spreading your investment dollars among different types of asset classes and markets - stocks and bonds, domestic and foreign markets, commodities and cash - positions you to seize opportunities as the performance cycle shifts from one market or asset class to another.
Capstone's Tactical Asset Allocation Portfolio "TAAP" seeks to enhance investment returns by opportunistically shifting the asset mix of a portfolio in response to the changing patterns of risk and reward available in the capital markets. TAAP utilizes ETF's. ETF's are baskets of securities that are traded like individual stocks, on an exchange. They track a wide variety of sector specific, market specific, international and defensive indices.
TAAP portfolios are constructed by combining the strategic and tactical insights of Capstone's investment team and strategically shifts among a core position, sector specific positions and non-equity/defensive ETF's as described below.
The Core allocation focuses on investment in asset classes that represent global equity exposure. This Core allocation could represent as little as 20% of the portfolio or as much as 80% of the portfolio depending on our strategic position.
The Sector allocation focuses on investment in asset classes representing domestic economic industry sectors. This sector allocation could represent as little as 10% of the portfolio or as much as 50% of the portfolio depending on our strategic position.
NON-EQUITY / DEFENSIVE
The Opportunistic/Defensive allocation focuses on asset classes that provide defensive investments that compliment risk adjusted long term growth. This allocation could represent as little as 0% of the portfolio or as much as 50% of the portfolio depending on our strategic position.